SHANGHAI, Jan. 21 (SMM) -- On Wednesday, LME nickel prices opened at USD 19,350/mt and closed at USD 18,990/mt, with the highest level at USD 19,350/mt and lowest level at USD 18,760/mt. Daily trading volumes were 2,062 lots and positions were 95,499 lots.
On Wednesday, sources reported that Chinese authorities orally required that some major banks should restrict grant of new loans in the remainder of January 2010. However, Liu Mingkang, Chairman of the China Banking Regulatory Commission (CBRC), denied this news at the Asian Financial Forum, but he also said the CBRC has controlled the expansion of credit supply as credit risks was increasing in mainland banking industry. The news strongly depressed China's stock prices, and the US dollar index slumped below 78 but met resistance at 78.5. LME base metals prices declined last night due to concerns that demand outlook of commodity might be pessimistic by the tight supply of cash in the future.
Yesterday, LME nickel prices faced pressure to decline after reaching USD 19,350, and prices are expected to fluctuate within a certain range in the near future. Performance of US dollar index will be relatively strong in the short run, and will exert further pressure on base metal prices.
Today, LME Nickel prices are expected to move in the USD 18,700-19,300/mt range.
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