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SMM Morning Review - 2011/8/22 Nickel Market
Aug 22,2011 09:37CST
price review forecast
Source:SMM
Shanghai nickel spot nickel prices will continued to be weighed by stagnant LME nickel prices, and are expected to move in the RMB 161,800-163,300/mt range on Monday.

SHANGHAI, Aug. 22 (SMM) -- LME nickel LME nickel for delivery in three months opened at USD 21,250/mt and closed at USD 21,210/mt overnight, down by USD 144/mt from a day earlier, with the highest price at USD 21,589/mt and the lowest price at USD 21,118/mt.  Daily trading volumes were 2,242 lots, up by 134 lots. Positions were 87,125 lots, up by 378 lots from a day earlier. LME nickel inventories were up by 120 mt to 103,212 mt.

LME nickel prices fluctuated widely around USD 21,350/mt last Friday. Boosted by weaker US dollar, LME nickel prices hit a high of USD 21,589/mt during the European trading hours. However, LME nickel prices fell at the tail of the trading and hit a low of USD 21,118/mt, with prices finally closing at USD 21,210/mt, down by USD 144/mt from a day earlier. Investors’ concern over global economic outlook dampened trading sentiment and fueled risk aversion sentiment, weighing on base metal prices.

Investors’ concern over global economy and European debt crisis continued to dampen equity market last Friday, with the equities in the euro zone and the US closing with losses. Concern that the US, or even the global economy, may slip into another recession is growing in the market. Major financial institutions in the US cut economic growth forecast for 2012, fueling investors’ expectation that the Federal Reserve may launch QE3. In response, the US dollar closed with slightly losses.

As the euro zone still failed to implement an effective solution to solve the euro zone debt crisis, investors became more pessimistic towards the euro zone debt outlook, which prevented the euro from rebounding.

LME nickel prices opened at USD 21,200/mt on Monday. SMM believes that LME nickel prices will remain fluctuation trend, and find support at USD 21,000/mt on Monday. Shanghai nickel spot nickel prices will continued to be weighed by stagnant LME nickel prices, and are expected to move in the RMB 161,800-163,300/mt range on Monday. 
 
 

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