SHANGHAI, Feb. 25 (SMM) -- On February 24th, LME nickel prices opened at USD 20,102/mt and closed at USD 20,473/mt, with the highest level at USD 20,500/mt and the lowest level at USD 19,950/mt. Daily trading volumes were 1,918 lots and positions were 94,031 lots.
Trading sentiment in Chinese market after the Chinese New Year Holiday was not encouraging, which triggered concerns over Chinese market from overseas market. Currently, commodity prices moved into a dilemma. Upward momentum of commodity prices was weak due to emerging tight monetary policies from China and the US. However, any downward room for commodities prices will also be limited due to the expectation of increased demand with the approaching of the Chinese peak-dead season as well as the fact that US dollar index has difficulty in moving further after hitting resistance level.
Close attention from the entire world has been paid to the rapid growth of commodity prices in 2009, and the increases of discount rate from the US shall be deemed as concerns over rapid growth of raw material prices rather than as the sign of transformation of monetary policy. US Department of Commerce released on Wednesday that new home sale figure in January has declined by 11.2%, or 309,000 sets annually on current monthly decline figure, setting a record low since 1963. From the sometimes favorable or sometime unfavorable new home sales figure, as well as Bernanke's address at Congress on Wednesday, it can be seen that recovery pace of economy is still unstable, and it is quite necessary to maintain relatively low interest rate for a long time.
It is expected that LME nickel prices will continue to fluctuate at high levels, and will continue to have upward momentum. Fluctuation range of LME nickel prices may be the same as the previous day, with prices moving in the USD 19,900-20,500/mt range.
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