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SMM Morning Review – 2011/11/18 Nickel Market
Nov 18,2011 09:57CST
smm insight
Source:SMM
In China’s domestic nickel spot market, overnight LME nickel price decline will drag spot nickel prices to move in the RMB 130,500-132,0500/mt range on Friday.

SHANGHAI, Nov. 18 (SMM) -- LME nickel prices opened at USD 17,950/mt and closed at USD 17,813/mt overnight, down USD 337/mt from a day earlier, with the highest price at USD 18,100/mt and the lowest price at USD 17,725/mt. Daily trading volumes were 1,756 lots, down 303 lots. Positions were 96,332 lots, down 555 lots. LME nickel inventories were 83,220 mt, down 378 mt from a day earlier.

LME nickel prices fell all the way during the Asian trading hours, and extend downward momentum to hit a low of USD 17,725/mt during the early European trading hours. During the evening trading hours, LME nickel prices rebounded to move above USD 18,000/mt but fell again to close at USD 17,813/mt at the tail of the trading, down USD 337/mt from a day earlier, due to exacerbated concern over the European trading hours from new high of Spanish government bond yield and owning to weak economic data from the US.

The European debt crisis triggered market tension and continued to weigh on base metal prices. The yields of Spanish and French government bond issued on November 17th soared, and the yield of Spanish 10-year government bond auctioned at an average of 6.975%. In addition, according to an overseas media, there is no plan to bailout Italy through EFSF, which deepened losses in the US equity and commodity market. The Dow Jones Industrial Average closed 134 points lower, and CRB index was down 2.48%. Base metal prices fell across the board overnight.

LME nickel prices are expected to fluctuate with weak momentum, with support at USD 17,000/mt and resistance at USD 18,200/mt on Friday.  In China’s domestic nickel spot market, overnight LME nickel price decline will drag spot nickel prices to move in the RMB 130,500-132,0500/mt range on Friday. 

 

nickel; nickel price; LME nickel price; spot nickel price; European debt crisis; US dollar; euro;

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