SHANGHAI, Jun. 22 (SMM) -- LME nickel prices opened at USD 19,800/mt and closed at USD 19,649/mt on June 21st, up USD 49/mt from a day earlier, with the highest price at USD 20,418/mt and the lowest price at USD 19,591/mt. Daily trading volumes were 2,308 lots and positions were 88,970 lots.
LME base metal prices finally closed with gains following decline after testing highs, due to support from stronger Asian equity market and from weaker US dollar. This is mainly attributed to China's announcement of RMB exchange rate reform. Chinese RMB exchange rate experienced the largest intraday advance on Monday since 2005. People's Bank of China released to further promote the reform of RMB exchange rate formation mechanism, and to enhance the flexibility of RMB exchange rate. This announcement significantly pushed up financial market on Monday, with market expecting gradual appreciation of RMB against the US dollar. Any specific details concerning the implementation of RMB exchange rate reform were not revealed, which made market still remain cautious. It is expected that market will remain relatively stable performance. Close attention should be paid to the existing home sale data in May from the US.
It is expected that LME nickel prices will move between USD 19,300-20,300/mt on June 22.
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