SMM Morning Review - 2010/5/24 Nickel Market

SHANGHAI, May 24 (SMM) -- LME nickel prices opened at USD 21,200/mt last Friday, and closed at USD 21,390/mt, up USD 255/mt from a day earlier, with highest price at USD 21,600/mt and the lowest price at USD 20,700/mt. Daily trading volumes were 1,961 lots and positions were 91,370 lots.

Base metal prices rebounded last Friday along with a decline of the US dollar and the strong performance of the US stock market. The Germany House of Commons passed its rescue plan to debt-loaded European countries, and Germany shall provide Euro 147.6 billion which is the highest among the total Euro 750 billon that is secured by the EU and the IMF. In general, the panic sentiment triggered by the Greece debt issued had eased to certain extent in the short term. The US dollar index met certain resistance at 87 and is expected to experience corrections at this level, which will lend support for commodity prices.

It is expected that LME nickel prices will move in the USD 20,700-22,000/mt range today.

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

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