SHANGHAI, Feb. 23 (SMM) -- On February 22nd, LME nickel prices opened at USD 20,600/mt and closed at USD 20,475/mt, with the highest level at USD 20,750/mt and the lowest level at USD 20,400/mt. Daily trading volumes were 1,429 lots and positions were 92,247 lots.
Yesterday was first trading day after the Chinese New Year Holiday, and base metals prices in future market all took profit, which triggered LME market concerns over demand from Chinese market. However, given the fact that impact of an increase of 0.5 percentage points of bank requirement reserve ratio before the Chinese New Year Holiday has already gradually waned, Chinese market was only temporarily dominated by wait-and-see sentiment as current Chinese market was just lack of confidence and encourage for price increases. US dollar lingered around 80.5, without strong downward momentum but also under relatively high pressure to rise further. United States raised the discount rate, which helped eased concern over expectation of interest rate hikes. Since recovery of economy is still vulnerable, the government mainly intended to control the rapid increase of raw material prices, so the government only adopted relatively modest measures. The monetary policy and performance of US dollar provide relatively mild environment for recent commodity prices. In this context, it is expected that commodity prices will gradually advance along with the recovery of demand from Chinese market.
LME nickel prices moved at an important resistant level, and may be expected to decline to accumulate momentum. Price may fluctuate in the USD 20,000-20,700/mt range today.
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