SMM Morning Review - 2010/3/17 Nickel Market

SHANGHAI, Mar. 17 (SMM) -- Yesterday, LME nickel prices opened at USD 21,600/mt and closed at USD 21,860/mt, with highest price at USD 22,070/mt and lowest price at USD 21,520/mt. Daily trading volumes were 1,549 lots and positions were 108,252 lots.

Yesterday, it was announced that US interest rate shall remain between 0-0.25%, and interest rate shall stay at low level for a long time, after the end of Federal Reserve meeting on interest rates. This news weighed heavily on US dollar index, and US dollar index fell below 80 again, lingering at 79.8 currently. The recent strong trend of US dollar index has not changed, and US dollar index may have momentum to climb further after this round of decline, which will weigh on base metal price trend in the short term. Currently, recovery of operating rates at China's downstream industries was not positive and support from fundamentals in the first quarter was weak, which will lend limited support for base metal prices. In this context, base metal prices will continue to maintain fluctuation price trend in the near term.

Yesterday, LME nickel prices continued moving above 5-day moving average, and still had upward momentum. However, resistance obviously intensified when prices approached USD 22,450/mt. It is expected that LME nickel prices will move in the USD 21,600-22,200/mt range today.

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

 
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