SHANGHAI, Aug. 29 (SMM) -- Last Friday, LME nickel prices opened at USD 22,710/mt, and closed at USD 21,700/mt, up by USD 680/mt from a day earlier, with the highest price at USD 21,700/mt and the lowest price at USD 20,900/mt. Daily trading volumes were 2,740 lots, up by 867 lots from a day earlier. Positions were 85,351 lots, down by 846 lots. LME nickel inventories were 105, 018 mt, up by USD 1,008 mt from a day earlier.
LME nickel prices advanced due to support from weak US dollar last Friday, and accelerated increases at the tail of the trading, boosted by Ben Bernnake’s statement. LME base metal prices rallied, and LME nickel prices closed at USD 21,700/mt, up by 3.2% from a day earlier.
Ben Bernnake did not mention QE3 last Friday, but was optimistic towards long-term economic outlook of the US economy. He said, with the short-term negative factors restricting the US economic development gradually waning, the US economic development outlook in 2H 2011 will gradually improve, easing pessimistic expectation over the US economic outlook to certain extent. The US equity market once tumbled after Ben Bernnake’s statement, but rallied rapidly later. The euro and commodity prices also rallied along with rebounding equity market.
LME market will be closed today. In the Shanghai nickel spot market, Last Friday's LME nickel price rally will definitely support spot nickel prices. SMM expects that spot nickel prices will move in the RMB 159,000-160,000/mt range on Monday.