SMM Morning Review - 2010/5/7 Nickel Market

SHANGHAI, May 7 (SMM) -- LME nickel prices opened at USD 22,015/mt yesterday, and closed at USD 21,850/mt, with highest price at USD 22,900/mt and lowest price at USD 20,450/mt. Daily trading volumes were 4,811 lots and positions were 96,104 lots.

LME nickel prices fell slightly by USD 515/mt yesterday, which is mainly due to the fact that low prices attracted buying after LME nickel prices had fallen sharply for two consecutive days. US stocks continued to fall, further weakening the euro against the dollar. Crude oil prices fell and gold prices advanced. The European Central Bank announced to keep interest rate unchanged at 1%, which is in line with market expectation. As market still concerned over sovereign debt crisis in Europe and the tight monetary policy in China, prices still faced risks to decline.

LME nickel prices were bearish, and prices are expected to move between USD 20,000-23,000/mt today.

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

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