SHANGHAI, Feb. 26 (SMM) -- On February 25th, LME nickel prices opened at USD 20,350/mt and closed at USD 20,455/mt, with the highest level at USD 20,699/mt and the lowest level at USD 20,245/mt. Daily trading volumes were 2,047 lots and positions were 94,418 lots.
Debt crisis in Greece continued to deteriorate. Although the Euro zone has tried efforts to maintain the stability among its members, it still failed to reach consensus on how to solve the debt crisis. The friction further intensified as German announced no support for debt crisis in Greece at present. Greece tried to defend itself, and push the responsibility of this crisis to overseas markets. Greece told that the crisis is mainly attributed to that fact that Nazi looted a large amount of gold from Greece. In addition, a controversial currency swap transaction conducted by the Greece Government in 2001 drove the country in difficult situation. In this context, the time when debt crisis in Greece can be solved will be further postponed, further aggravating inventors' concerns in the near term.
Economic data released yesterday from the US was lower than expectation. Although US Department of Commerce announced on Thursday that orders of durable goods increased by 3%, which is higher than expectation but mainly stimulated by aircraft orders, demand from other industrial were gradually on downward track. US Department of Labor released on Thursday that initial jobless claim increased by 22,000 last week, and the figure reached 496,000 after seasonal adjustment, reversing the significant decline trend of jobless claim in December 2009 and deteriorating investors' concern over employment situation in the US. Long positions and short positions of US dollar index struggled at present, with US dollar index staggering in the 80.5-81 range. Trend of US dollar index will still be unclear before the stability of US economy, and recent robust rebound is still mainly temporarily. Commodity prices were in a dilemma, but the weak upward momentum of US dollar give hope to commodity prices which constantly depressed recently. In this context, any room for base metal prices to fall further will be limited.
It is expected that LME nickel prices will continue to fluctuate at high levels, with prices moving in the USD 20,100-20,700/mt range. Prices will try to make breakthrough but possibility will be small given the weak upward momentum, and prices will still in fluctuating situation.
To contact the writer on this report: email@example.com
Copyright © SMM. All Rights Reserved
None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: firstname.lastname@example.org