SHANGHAI, Jan. 28 (SMM) -- On Wednesday, LME nickel prices opened at USD 18,050/mt and closed at USD 17,800/mt, with the highest level at USD 18,175/mt and the lowest level at USD 17,737/mt. Daily trading volumes were 2,018 lots and positions were 87,302 lots.
A-share stock market failed to stay above 3000 points and stock market prices plunged before closing, triggering a panic among global financial market again and further weighing on market concern over constantly tight credit policy by China. Yesterday, Standard & Poor's lowered sovereign credit rating of Japan, boosting steady strong performance of US dollar. In addition, US Department of Commerce announced that annual US new home sales, based on sales level in December, declined by 7.6% from 370,000 sets in November to 342,000 sets in December, setting a record low since March 2009. In this context, investors' pessimistic sentiment further grew, depressing prices of base metals. However, decline range of nickel prices was not wide as speculative buying of LME nickel was not strong previously, and LME nickel prices stayed above 40-day moving average.
It is expected that prices will continue to move on downward track, but any downward room for LME nickel prices will not be as big as other base metals prices. In addition, LME nickel prices will rebound technically after touching 40-day moving average, and LME nickel prices will move in the USD 17,800-18,200/mt range today.
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