SHANGHAI, Nov. 25 (SMM) -- LME nickel prices opened at USD 16,995/mt yesterday, with highest and lowest level at USD 16,995/mt and USD 16,388/mt, respectively, and finally prices ended at USD 16,750/mt. Total trading volumes reported 1,439 lots, and positions were 89,182 lots.
The US Department of Commerce released on Tuesday that the GDP in 3Q increased by 2.8% on a quarterly basis after revision, lower than previous level of a growth rate of 3.5%, depressing investor expectations of economic recovery in the future. China’s futures market dropped negatively affected by plunged stock markets, exerting great pressure on base metal prices, and base metal prices fell as a result. However, the expectations of inflation still existed in the market, and gold prices surged further after slight decline, so base metal prices will likely climb further after short-term reductions.
Technically, LME nickel prices are still in downward track, but any downward room for nickel prices will be limited as the US dollar index will edge down in the long run. SMM predicts LME nickel prices will fall further today, with prices expected to move in the USD 16,300-17,000/mt range.
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