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SMM Morning Review - 2011/8/12 Nickel Market
Aug 12,2011 09:41CST
price review forecast
Source:SMM
Boosted by overnight’s LME nickel price increase, Shanghai spot nickel prices are expected to advance, and will fluctuate in the RMB 165,000-166,000/mt range on Friday.

SHANGHAI, Aug. 12 (SMM) -- LME nickel LME nickel for delivery in three months opened at USD 20,968/mt and closed at USD 21,581/mt overnight, up by USD 461/mt from a day earlier, with the highest price at USD 21,799/mt and the lowest price at USD 20,700/mt. Daily trading volumes were 3,173 lots, down by 1,564 lots. Positions were 91,704 lots, down by 52 lots from a day earlier. LME nickel inventories were up by 624 mt to 103,500 mt.

On Thursday, after slight decline to USD 20,700/mt following open, LME nickel prices rapidly surged to USD 21,800/mt. Later, LME nickel prices fell from high and slipped below USD 21,000/mt. At the tail of the trading, LME nickel prices further advanced and closed at USD 21,581/mt, up by USD 461/mt from a day earlier. Better-than-expected US employment report as well as expectation over RMB appreciation boosted investors’ confidence in base metal demand from China which is the largest base metal consumer in the world, which help support base metal prices. 

The US Department of Labor announced on Thursday, the seasonally adjusted US initial jobless claim in the week ending on August 6th fell by 7,000 to 395,000, lower than  previous estimation of 400,000. The data inspired market, with the US equity rebounding and the base metal prices rallying.

Chinese CNY versus the US dollar in the China Foreign Exchange Center recorded the largest intraday advance in nine months, with central parity rate of the yuan also hitting a historical high.

LME nickel prices opened at USD 21,700/mt on Friday. SMM expects LME nickel prices will advance further, and will target USD 22,200-22,600/mt after breaking through USD 22,000/mt.  Boosted by overnight’s LME nickel price increase, Shanghai spot nickel prices are expected to advance, and will fluctuate in the RMB 165,000-166,000/mt range on Friday.


 

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