SHANGHAI, Mar. 15 (SMM) -- LME nickel contract for delivery in three months opened at USD 25,970/mt and closed at USD 25,870/mt over night, down by USD 30/mt from a day earlier, with the highest price at USD 26,124/mt and the lowest price at USD 25,525/mt. Daily trading volumes were 1,932 lots and positions were 112,996 lots. LME nickel inventories were down by 438 mt to 127,986 mt.
LME base metals were closed mixed on Monday. LME nickel prices fluctuated narrowly during the Asian trading hours, and advanced in the evening trading hours, with prices struggling around USD 26,000/mt and finally closing with slight losses.
Wait-and-see sentiment was triggered due to concerns that earth quake in Japan may cast show on global economy, and uncertainties continued to weigh on market. Although sell-offs of base metals were triggered due to earth quake in Japan and the North Africa and the Middle East tension, base metal prices were boosted to cretin extent due to expectation of reconstruction after the disaster.
China's new low during February was lower than expected, and M2 was up YoY due to government’s policy to tighten money supply and counter inflation. This is expected to dampen demand for base metals.
Short-term movement will be guided by performance of global equity market, economic index as well as monetary policy and economic status from China. Market continues to focus on earth quake in Japan, China's inflation, the Federal Reserves' meeting, the Middle East tension and the European debt crisis. Prices were slightly stabilized, with support at USD 25,300/mt and resistance at USD 26,000/mt.
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