SHANGHAI, Nov. 27 (SMM) -- LME nickel prices opened at USD 17,172/mt yesterday, with highest and lowest level at USD 17,172/mt and USD 16,525/mt, respectively, and finally prices ended at USD 16,625/mt. Total trading volumes reported 867 lots, and positions were 89,549 lots.
Yesterday, the US markets were closed for Thanksgiving Day holiday, leaving slim transactions. On Thursday, the European stock markets plunged, with a daily decline setting a new high since April, since the state-owned Dubai World was in huge debt and proposed to delay debt payments. This news also triggered investor concerns over economic recovery, helping push up risk preference of US dollar. In this context, the US dollar index rebounded strong after hit a new low on Wednesday, and is expected to fall slightly in the near future, with 75.3 as the strong pressure level.
Base metal prices showed strong performance due to expectations of inflation recently, neglecting actual market demand. However, domestic stock markets showed signs of declines recently, resulting in the withdrawal of large amount of speculative funds, and raising market sentiment of risk-avoidance. SMM predicts LME nickel prices will move in the USD 16,250-17,000/mt range today in view of weak global nickel market fundamentals.
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