SHANGHAI, Nov. 30 (SMM) -- LME nickel prices opened at USD 16,775/mt last Friday, with highest and lowest level at USD 16,775/mt and USD 15,726/mt, respectively, and finally prices ended at USD 16,275/mt. Total trading volumes reported 2,250 lots, and positions were 89,537 lots.
Last Friday, Dubai World announced to delay debt payments, raising global panic sentiment, and the demand for US dollar risk-avoidance strengthened as a result, with the US dollar index reaching 75.57. The plunged Chinese stock markets resulted in sharp declined in base metal futures prices, and gold prices, reported constant growth previously, also dropped to USD 1,136.4/oz.
However, the panic sentiment caused by Dubai World debt crisis eased last night, reducing the demand for US dollar risk-avoidance, and the US dollar index dropped as a result. In this context, investors increased purchase volumes of base metals when prices were low, helping push up base metal prices slightly. Market players still adopted a wait-and-see attitude with regard to Dubai World debt crisis. As Dubai and other neighboring countries were crude oil producing countries, this debt crisis will exert impact on crude oil market. However, the weakness of US dollar index and strong base metal prices failed to support crude oil prices recently, leaving possibility that crude oil prices will fluctuate, which will depress investor optimistic expectations of commodities prices.
SMM predicts LME nickel prices will move in the USD 16,000-16,600/mt range today.
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