SHANGHAI, Dec. 23 (CBI China) -- Three-month LME nickel opened at RMB 10,300/mt, high RMB 10,500/mt, low RMB 9,975/mt, closed at RMB 10,150/mt, down RMB 100/mt. Premium is RMB 114/mt, inventory is 75,366mt, up 1122mt.
Yesterday, the commodity market transactions were relatively muted due to the holiday, crude oil prices continued to decline and closed at below USD 40, while the base metals prices went up and down. LME copper edged up supported by the Chinese imports data in November (LME copper imports up 37.7% YoY), LME nickel inventory increased further by 1,122 mt, exerting pressure on prices, in this context, the closing prices of LME nickel fell USD 100, with the declines in both volume and position.
As to domestic market, China Central Bank announced to further cut the two rates, which is the fifth for Central Bank to cut interest rates from September this year. The effect of the interest rates cut was in line with the market expectations, but it will take 2-3 months to take actual effect on the market. As to stainless steel, steel production in Zhang Pu was suspended this week as scheduled; market rumor that steel mills will increase their supply of finished products in the near future caused some pressures on stainless steel prices.
Metal is expected to continue to be effected by sluggish transactions today, nickel prices will fluctuate slightly in the USD 10000-10400/mt range.
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