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SMM Morning Review – 2011/11/9 Nickel Market
Nov 9,2011 10:12CST
price review forecast
Source:SMM
Spot nickel prices will move in the RMB 135,500-138,000/mt range on Wednesday.

SHANGHAI, Nov. 9 (SMM) -- LME nickel prices opened at USD 18,700/mt and closed at USD 18,581/mt overnight, down USD 44/mt from a day earlier, with the highest price at USD 18,775/mt and the lowest price at USD 18,352/mt. Daily trading volumes were 1,502 lots, up 647 lots. Positions were 97,827 lots, down 1,189 lots. LME nickel inventories were 83,640 mt, down 1,416 mt from a day earlier.

LME nickel prices fluctuated narrowly between USD 18,600-18,750/mt during the Asian trading hours and early European trading hours. During the evening trading hours, LME nickel prices fell steadily below USD 18,600/mt and USD 18,400/mt consecutively. Although Italy passed the government budget plan on Tuesday, market sentiment was still weighed as its Prime Minister Silvio Berlusconi will no longer hold a majority in Parliament. However, LME nickel prices rallied at the tail of the trading, and closed at USD 18,581/mt, down USD 44/mt from a day earlier. 

The European debt crisis is still the major concern for market investors. The fragile political situation in Italy triggered investors' worries that Italy may not keep its austerity plan committed on the G20 summit, which sent the 10-year Italian bond yields to a record high since it entered the euro zone. In response, the non-US dollar currencies were weighed down. However, Prime Minister Silvio Berlusconi' s announced that he would resign after Parliament passes economic reform measures, boosting market sentiment to great extent. In response, LME base metal prices advanced to certain extent at the tail of the trading. China will release a slew of important economic indicator on Wednesday. Market player were optimistic towards the data, expecting that China’s CPI may fall to around 5.5%. This further increased market expectation over slight loose monetary policy in China. Improved market liquidity will lend upward momentum for market, which will guide base metal prices to rebound.

It is expected that LME nickel prices will continue to fluctuate on Wednesday, wit resistance a USD 19,000/mt and support at USD 18,300/mt. In China’s domestic nickel market, spot nickel prices will move in the RMB 135,500-138,000/mt range on Wednesday.

 

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