SHANGHAI, May 5 (SMM) -- LME nickel prices opened at USD 26,150/mt last Friday, and closed at USD 24,400/mt, with highest price at USD 26,469/mt and lowest price at USD 24,399/mt. Daily trading volumes were 3,967 lots and positions were 96,706 lots.
LME nickel prices dropped significantly by USD 2,050/mt, down 7.75%, the largest decline among other base metals, affected by sluggish euro and slip of stock markets. China raised bank requirement reserve ratio late last week, which is the third time adjustment of requirement reserve ratio within this year, triggering great concern over market. According to data from HSBC on Tuesday, China's purchasing managers index (PMI) recorded 55.4, the lowest level for six months, dampening market sentiment to great extent. The aforesaid two factors triggered market concern over weak demand from Chinese market. With regard to inventory, LME nickel inventories grew by 468mt to 145,782mt on May 4th, and the growing inventory is also a factor behind the significant decline of LME nickel prices.
Concerns over Chinese tight monetary policy as well as the uncertainties of debt crisis in euro zone still haunted metal market, and LME nickel prices are expected to move between USD 24,000-25,500/mt.
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