SMM Morning Review – 2010/8/2Nickel Market

SHANGHAI, Aug. 2 (SMM) -- LME nickel prices opened at USD 20,450/mt and closed at USD 21,050/mt last Friday, up USD 350/mt from a day earlier, with the highest price at USD 21,200/mt and the lowest price at USD 20,450/mt. Daily trading volumes were 1,727 lots and positions were 88,367 lots. LME nickel inventories increased by 720mt to 117,498mt.

LME nickel prices continued to rally, due to better-than-expected US business report. The US Department of Commerce released last Friday that the US GDP in Q2 was up 2.4%, the previous estimation 2.5%, and the revised GDP in Q2 was up 3.7%. It can be seen the growth pace of US economy slowed down, while the growth of imports set a high since the first quarter of 1884. The US Institute for Supply Management announced last Friday that the US July Chicago PMI was 62.3, and the previous estimation from the analysts was 56.0, while the PMI was 59.1 in June. The release of such data helped ease concern over the US economy recovery and the possibility of double-dip and boost base metal prices rebound rapidly.

It is expected that LME nickel prices will move between USD 20,500-21,500/mt on August 2.

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