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SMM Morning Review - 2011/10/18 Nickel Market
Oct 18,2011 10:20CST
price review forecast
Source:SMM
Domestic nickel prices on Tuesday will be limitedly changed from Monday, with prices expected to between RMB 139,500-140,500/mt.

SHANGHAI, Oct. 18 (SMM)—LME nickel market overnight opened at USD 18,900/mt, with the highest and lowest level of USD 19,150/mt and USD 18,651/mt, respectively. Finally, LME nickel market closed at USD 18,855/mt, down USD 70/mt from a day earlier. Trading volumes were 1,662 lots, down by 258 lots. Positions were 94,910 lots, down by 919 lots. Inventories were 90,924 mt, down by 552 mt. 

LME nickel market overnight staged fluctuations. During Asian trading hours, LME nickel prices fluctuated narrowly, and advanced to USD 19,150/mt during earlier European trading hours. However, remarks made by German Finance Minister depressed market optimism towards the resolution of the European debt issues, with prices down as low as USD 18,651/mt. At the tail of trading, LME nickel prices erased some losses, with prices finally closing at USD 18,855/mt.

The comments made by German Finance Minister on Monday dent markets expectations towards measures to resolve the European debt issues, as markets worried whether G-20 will act together to resolve the debt problem, and the issue in the Europe will worsen further if the European Union again moves slow for the debt problem. In this context, market risk aversion sentiment increased on Monday. Meanwhile, the poor manufacturing data announced by US added to market fears, sending all three major US indexes down at the closing. The Euro, together with other commodities, dropped sharply, and the US dollar index advanced significantly in response. All these negative factors sent all metal prices down at the closing.

Market sentiment has been hit by the unfavorable comments from Germany towards the European debt issues. SMM expects all base metal prices will remain weak, and LME nickel prices will move around USD 19,000/mt. Domestic nickel prices on Tuesday will be limitedly changed from Monday, with prices expected to between RMB 139,500-140,500/mt.
 

LME nickel prices
domestic nickel prices
European debt issues

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