SMM Morning Review - 2011/3/9 Nickel Market

SHANGHAI, Mar. 9 (SMM) -- LME nickel contract for delivery in three months opened at USD 27,450/mt and closed at USD 26,877/mt, down by USD 573/mt from a day earlier, with the highest price at USD 27,480/mt and the lowest price at USD 26,602/mt. Daily trading volumes were 1,759 lots and positions were 108,869 lots. LME nickel inventories were down by 282 mt to 129,102 mt.

As investors' concern over geopolitical outlook improved to certain extent, crude oil prices closed slightly lower at USD 105/bbl. In addition, the possible interest rate hike from European central bank in April offset concern over the European sovereign debt issue. In this context, LME copper prices closed with gains on March 8, and LME nickel prices also closed higher. However, market is still hunted by the Middle East turmoil, oil price and possible slower pace of global economy recovery. In this context, LME nickel prices will be still volatile in the short term, with prices meeting resistant at USD 27,500/mt and receiving support at USD 26,000/mt.

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