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SMM Morning Review – 2011/9/27 Nickel Market
Sep 27,2011 10:07CST
price review forecast
Source:SMM
In China’s spot nickel market, spot nickel prices will be largely stable from overnight LME nickel price increase, and will fluctuate in the RMB 138,500-140,500/mt range on Tuesday.

SHANGHAI, Sept. 27 (SMM) -- LME nickel prices opened at USD 18,400/mt and closed at USD 18,214/mt overnight, up USD 14/mt from a day earlier, with the highest price at USD 18,625/mt and the lowest price at USD 17,150/mt. Daily trading volumes were 5,697 lots, down 2,161 lots. Positions were 93,583 lots, up 5,774 lots. Inventories were 97,140 mt, down 102 mt.

LME nickel prices initially slipped but rebounded back later overnight. During the Asian trading hours, LME nickel pries fell sharply and hit a low of USD 17,150/mt, but began to rebound at the tail of Asian trading hours from weaker US dollar. During the European trading hours, boosted by rebound in equity markets and the euro, LME nickel prices advanced to hit a high of USD 18,625/mt, and fell slightly at the tail of the trading to close at USD 18,214/mt, up USD 14/mt from a day earlier. Based on current movement, LME nickel prices are supported at USD 18,000/mt, but will further test sustainability at this level.

On Monday, German Business Climate Index fell for the third consecutive months and hit a 15-month low. The US new home sales also recorded a new low in 9 months. Disappointing economic data further weighed sluggish market. According to IMF, European Financial Stability Fund (EFSF) bailout fund will be extended to Euro 2 trillion from current Euro 440 billion, which strongly boosted market sentiment. In response, equity market in the euro zone and US began to rebound, with Dow Jones Industrial Average exceeding 11,000 points, up 2.53%. The US dollar and euro largely stabilize, while gold slumped. Crude oil stabilized around USD 80/barrel. Although LME base metal prices largely closed with losses, prices managed to pare certain losses from rebounding equity market.

On Tuesday, LME nickel prices opened at USD 185,000/mt, and it is expected that sustainability at USD 18,000/mt shall be tested further. In China’s spot nickel market, spot nickel prices will be largely stable from overnight LME nickel price increase, and will fluctuate in the RMB 138,500-140,500/mt range on Tuesday.
 

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