SMM Morning Review - 2010/1/12 Nickel Market

SHANGHAI, Jan. 12 (SMM) -- On Monday, LME nickel prices opened at USD 18,205/mt and closed at USD 18,200/mt, with highest price at USD 18,485/mt and lowest price at USD 17,900/mt. Daily trading was 1,926 lots and positions were 98,372 lots.

On Monday, US dollar index further weakened and fell to 77 due to temporarily lower expectation of interest increases, which gave support for prices of base metals.  China Customs released positive imports and exports data for copper and aluminum and prices of base metals were on upward trend. However, prices lacked momentum to rise further since the actual demand didn't recover significantly and since most long positions adopted a wait-and-see attitude temporarily following active movement of speculative funds previously. Technically, downward room for LME nickel prices to fall further was limited, and prices still received strong support at USD 18,000/mt.

Today, prices are expected to fluctuate narrowly in the USD 17,900-18,400/mt range.

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