SMM Morning Review - 2010/6/7 Nickel Market

SHANGHAI, Jun. 7 (SMM) -- LME nickel prices opened at USD 18,800/mt last Friday, and closed at USD 18,065/mt, down USD 584/mt from a day earlier, with the highest price at USD 18,900/mt and the lowest price at USD 17,975/mt. Daily trading volumes were 3,831 lots and positions were 89,733 lots.

LME base metal prices all fall significantly last Friday and LME nickel prices fell to a four-month low by 3.13%. Market was negatively affected by lower-than-expected employment data from the US, concern over slower growth of Chinese economy as well as the EU sovereign debt crisis. The US Department of Labor announced last Friday, the US employment data in May increased by 431,000, the biggest growth since March 2000, but the previous prediction was 513,000/mt. As market concerned that the Hungary will be the next victim of the EU debt crisis, the euro fell below USD 1.20 for the first time over the past four year versus the US dollar.

In addition to the unfavorable technical conditions, current market is weighed by many unfavorable factors and will not recover in the short term. It is expected that prices will move between USD 17,500-19,000/mt on June 7th.

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

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