SHANGHAI, May 17 (SMM) -- LME nickel prices opened at USD 22,700/mt last Friday, and closed at USD 21,577/mt, lowest price at USD 21,500/mt. Daily trading volumes were 2,659 lots and positions were 96,257 lots.
The US dollar index surged to test 85.43 as the EU debt crisis further pushed up the US as a tool to hedge against financial risks, resulting in sell-offs of base metals. In addition, upward momentum of the US dollar remains strong, and may have room to advance further in the future, exerting sell-offs pressure on base metal prices. The US Economic Cycle Research Institute (ECRI) released on Friday that an important indicator that is used to measure the US economic growth pace in the future fell to a four-week low, and the annual growth rate of such indicator hit a 40-week low, indicating that the economic recovery will slow down in the fowling months. Currently, as the effect from the large scale economic stimulus gradually waned, the growth from consumption, technology innovation, and the improvement of industrial production efficiency haven't really recovered, which led to slow growth of global economy but abundant liquid in the market. It is expected that such situation continue to last in the following sevearal months.
LME nickel prices fell to the supporting level and may have the possibility to fall further. Any upward momentum for LME nickel prices is weak and prices are under great pressure given the strong US dollar index. It is expected that LME nickel prices will move in the USD 21,200-22,000/mt range today.
To contact the writer on this report: cracewu@smm.cn
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