SHANGHAI, Jan. 13 (SMM) -- On Tuesday, LME nickel prices opened at USD 18,150/mt and closed at USD 17,550/mt, with the highest level at USD 18,200/mt and lowest level at USD 17,500/mt. Daily trading was 2,779 lots and positions were 99,169 lots.
The People's Bank of China announced on Tuesday that reserve requirement ratio was raided by 0.5 percentage points from January 18th, and this is the first adjustment of reserve requirement ratio since the eruption of economic crisis from the 2H of 2008. A series of macro economic data released at the end of 2009 supported the steady climb trend of Chinese economy, which stepped up the anti-inflation of Chinese Government. After the release of reserve requirement ratio adjustment policy, investors were concerned that whether other countries would be affected by this policy and strain the flow of capital or not. Overseas stock market and futures market both declined affected by this policy.
This news will trigger a chain reaction, and the recent bullish sentiment in stock market and futures market will come to an end. Prices of base metals will inevitably experience correction in the short term. It is expected that LME nickel prices will move in the USD 17,300-17,800/mt range today.
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