SMM Morning Review - 2010/2/1 Nickel Market

SHANGHAI, Feb. 1 (SMM) -- Last Friday, LME nickel prices opened at USD 18,300/mt and closed at USD 18,600/mt, with the highest level at USD 18,910/mt and the lowest level at USD 18,050/mt. Daily trading volumes were 2,945 lots and positions were 83,834 lots.

The US Department of Commerce announced last Friday that American GDP grew by 5.7% in 4Q, higher than analysts' prediction. Last Friday, US Senate reappointed Bernanke as the Chairman of the Federal Reserve through voting. US dollar climbed to 79.5 which is pushed by demand of US dollar to hedge risks, favorable economic data, and Bernanke's reappointment as Chairman of the Federal Reserve, further weighing on weak base metal prices. However, LME nickel prices experience upward performance since LME nickel prices were affected less by speculative funds previously, with prices climbing and facing pressure when almost touching USD 19,000 mt.

It is expected that LME nickel prices will continue to fluctuate narrowly, and will face pressure at USD 19,000/mt, with prices moving in the RMB 18,300-18,900/mt range today.

To contact the writer on this report: angelawang@smm.cn

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