SMM Morning Review - 2010/7/1 Nickel Market

SHANGHAI, Jun. 30 (SMM) -- LME nickel for delivery in three months opened at USD 19,210/mt and closed at USD 19,650mt on June 30th, up USD 440/mt from a day earlier, with the highest price at USD 19,750/mt and the lowest price at USD 18,933/mt. Daily trading volumes were 2,357 lots and positions were 87,891 lots.

A string of gloomy economic data make LME base metal prices fell across the board, boosting bearish sentiment in the market, including low consumer confidence index from the US and lower leading economic data from China after revision. According to report from the US ADP Employer Services, the US employment data increased by 13,000, and the previous estimation was 60,000. The Institute for Supply Management (ISM)–New York released a report that the New York enterprise activity in June fell from record high in May, and also announced that June Chicago PMI was 59.1, lower than that in May, further dampening market sentiment.

LME nickel prices will continue weak fluctuation trend in the short term under unfavorable macroeconomic fundamental, and are expected to move between USD 19,000-20,000/mt.

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

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