SHANGHAI, Mar. 10 (SMM) – The LME nickel market overnight opened at USD 26,900/mt and closed at USD 26,176/mt, down USD 849/mt from a day earlier, with the highest and lowest level of USD 27,315/mt and USD 26,170/mt, respectively. Trading volumes for the whole day were 3,017 lots. Positions were 111,363 lots. Inventories were 128,658 mt, down 444 mt.
The LME base metal market overnight closed lower across the board, as the accelerating unrest in Libya reduced market risk appetite, and as stocks markets fell. During the Asian trading hours, LME nickel prices fluctuated narrowly. In the evening, crude oil prices soared further due to uncertainties in the Middle East. Market worried that surging crude oil prices would trigger inflation and dampen world's economic recovery, further weighing on demand for base metals. Meanwhile, Gross sold all of its US government-related securities, including US Treasuries and agency debt, and markets expect that the US will likely tighten monetary policy. As a result, LME copper market accelerated its declines. LME nickel prices followed suit, with support available at USD 26,100/mt.
Uncertainties in the international energy market and outlook for base metal demand will remain important for movements in base metal markets in the short term. LME nickel prices will point to USD 27,000/mt and continue to consolidate its support at USD 26,000/mt in the near future.
Copyright © SMM. All Rights Reserved
None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: email@example.com