SHANGHAI, Jan. 26 (SMM) -- On Monday, LME nickel prices opened at USD 18,325/mt and closed at USD 18,190/mt, with the highest level at USD 18,538/mt and the lowest level at USD 18,125/mt. Daily trading volumes were 1,555 lots and positions were 87,771 lots.
US National Association of Realtors (NAR) estimated on Monday that the existing house sales in December 2009 would decline by 16.7% or 5.45 million sets on a yearly basis. The data are lower than market analysts' expectation and the decline range set a record high, exerting great pressure again on sensitive market. Currently, there were great concerns in the market over the economic recovery in 2009. Tightened policies as well as greatly battered stock market triggered investors' skepticism that rapid growth of economy might be pushed by stimulus funds, which exerted great concern over the previously optimistic view on economic recovery. Investors should pay particular attention to improvement of actual supply and demand, but China, as the engine to push up market demand in 2009, didn't show any sign of recovery at the year end.
In this context, there still exists possibility that LME nickel prices will fall further under current situation that supply and demand plays important role in shaping nickel prices, as fundamentals haven't improved in nickel market. It is expected that LME nickel prices will move in the USD 18,000-18,600/mt range today.
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