SMM Daily Review – 2011/8/19 Nickel Market

SHANGHAI, Aug. 22 (SMM) -- LME nickel for delivery in three months opened at USD 21,250/mt and closed at USD 21,250/mt last Thursday, down by USD 640/mt from a day earlier, with the highest price at USD 21,925/mt and the lowest price at USD 21,235/mt. LME nickel prices largely fluctuated narrowly after opening at USD 21,250/mt during the Asian trading hours on Friday. Although LME nickel prices rebounded to 10-day moving average, resistance was still strong at this level. While, LME nickel prices found support at USD 21,200/mt. Coupled with weak US dollar index, LME nickel prices found certain support last Friday. LME nickel inventories were up by 120 mt to 103,212 mt.

In the Shanghai nickel spot market, Thursday’s LME nickel price slump further dampened traders’ trading sentiment. On Friday, trading sentiment continued to be sluggish in the Shanghai nickel spot market, and traded prices continued to fall sharply. Mainstream traded prices of nickel from Russia were in the RMB 161,800-162,000/mt range, with a small amount traded at RMB 161,500/mt. Mainstream traded prices of nickel from Jinchuan Group were in the RMB 163,000-163,200/m range, with a small amount traded at RMB 163,500/mt. LME nickel prices continued to extend weak momentum, fueling wait-and-see sentiment in the market. Last week’s spot nickel prices were not as firm as before. As uncertainties of macro economies made traders’ confidence faltered, traders conducted transactions cautiously, weighing on prices.