SHANGHAI, Mar. 22 (SMM) -- Yesterday, LME nickel prices opened at USD 22,650/mt and closed at USD 22,580/mt, with highest price at USD 22,900/mt and lowest price at USD 22,321/mt. Daily trading volumes were 1,752 lots and positions were 98,961 lots.
India's central bank decided to raise the benchmark interest rate by 25 basis points to 3.5% last Friday night, while lifted the repurchase rate from 4.75% to 5%. These moves are mainly made to curb inflation pressure, and the country also told that more mild interest increases will be conducted to curb price hikes of domestic commodities. The above moves raised global concern over India's role to pull up commodity economy driven by its huge demand. In this context, US dollar index was pushed up as a need to hedge against financial crisis, and base metal pries were depressed as a result. In addition, there were still no effective solutions to debt crisis in Greece, and the disadvantages of European financial system compelled higher interest from market players to seek US dollar as a tool to hedge against financial crisis. In this context, base metal price trend was weighed recently.
Strong momentum of LME nickel prices hasn't weakened, and LME nickel prices will still have room to climb further today. It is expected that pries will move in the USD 22,300-23,000/mt range today, and will try to test previous high at USD 23,040/mt.
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