SHANGHAI, Mar. 23 (SMM) -- LME nickel contract for delivery in three months opened at USD 26,750/mt and closed at USD 26,400/mt over night, down by USD 350/mt from a day earlier, with the highest price at USD 26,750/mt and the lowest price at USD 26,200/mt. Daily trading volumes were 2,218 lots and positions were 105,848 lots. LME nickel inventories were down by 384 mt to 124,464 mt.
LME base metals largely ended with gains on Tuesday due to growing risk appetite from eased concern over Japan's nuclear crisis and also by virtue of support from weaker US dollar. LME nickel was the only product that ended with losses on Tuesday.
The US dollar closed at 75.457 on March 22, despite slight rebound after hitting a 15-month low. Supply concern pushed NYSE crude oil price higher, pointing to USD 105/bbl.
Military intervention by many countries in Libya has become the major focus in the market at present. In addition, Japan's nuclear crisis and China's tightening monetary policy also add uncertainties on the market. Investors closely watched these uncertainties, leading to relatively cautious trading sentiment at present. LME still failed to climb above 60-day moving average, and fluctuate relatively weakly at present. Wait-and-see sentiment was still strong, despite improved sentiment, and LME tin prices may continue to test 60-day moving average. SMM believes that LME nickel prices will meet resistant in the USD 26,800-27,000/mt range and receive support at USD 26,000/mt on March 23.
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