SMM Morning Review - 2010/6/8 Nickel Market

SHANGHAI, Jun. 8 (SMM) -- LME nickel prices opened at USD 17,900/mt yesterday, and closed at USD 18,450/mt, up USD 385/mt from a day earlier, with highest price at USD 18,500/mt and lowest price at USD 17,375/mt. Daily trading volumes were 2,832 lots and positions were 89,474 lots.

Most LME base metal prices ended with losses, but only LME nickel prices advanced slightly. Market transactions were volatile, with market more affected by movements of the euro and the equity markets. The euro fell to a four-year low below USD 1.19 versus the US dollar, weighing down on metal markets. Market players are focusing on Hungary for the concern over expanding of the European debt crisis.

The financial markets were bearish due to investors concern over slower economic growth in the EU and China. In addition, the lower-than-expected employment data released last Friday still dampened market sentiment. It is expected that LME nickel prices will move between USD 17,500-19,000/mt on June 8th.

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

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