SHANGHAI, May 14 (SMM) -- LME nickel market overnight opened at USD 22,600/mt, with the high and low-end at USD 23,100/mt, and USD 22,350/mt, respectively, and finally closed at USD 22,790/mt. Trading volumes for the trading day were 1,785 lots, with positions at 96,305 lots.
Market concerns over debt issues in the euro zone eased, as Spain and Portugal's decision to reduce budget deficit encouraged market sentiment. In this context, base metals market stabilized gradually after previous sharp declines. In the week ended May 8th, the US initial jobless claims dropped to 444,000, but still above the estimations of 440,000, a sign of low confidence over the labor market. The US dollar index climbed as high as 85.46, but base metals market showed no quick response to the soaring US dollar index after previous sell-offs. SMM believes the US dollar index will remain strong in the short term, but investor confidence over base metals market is gradually improving, with limited possibility to see marked price declines, despite of no strong long positions available.
SMM expects LME nickel prices to move between USD 22,300-23,300/mt on Friday.
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