SHANGHAI, May 20 (SMM) -- LME three month nickel contract prices opened at USD 21,200/mt and closed at USD 21,400/mt, with highest price at USD 21,650/mt and lowest price at USD 20,781/mt. Daily trading volumes were 2,517 lots and positions were 92,463 lots.
LME nickel prices closed down by USD 400/mt on May 19th on a daily basis, and other base metal prices all declined to certain extent, which is mainly attributed to the fact that investors' concern over prospect of the euro zone debt crisis dragged down stock and commodity markets. LME base metal prices didn't slip significantly after the euro advanced versus the US dollar. Germany announced short-selling ban to curb speculative activity, but market views towards such ban were mixed with regard to the fact that such ban may cause capital withdraw from the Euro zone.
Recent significant decline of base metal prices is mainly caused by market concern over default of sovereign debt in euro zone as well as impact on demand for metal from China from tight monetary policies. Such sentiment will not dissipate quickly in the market, and LME nickel prices are expected to move between USD 20,000-22,000/mt range today.
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