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SMM Morning Review – 2011/11/22 Nickel Market
Nov 22,2011 09:32CST
smm insight
Source:SMM
Negative news dragged down base metal prices overnight, but LME nickel prices finally closed with slight gains, the only base metal product ending with gains overnight.

SHANGHAI, Nov. 22 (SMM) -- LME nickel prices opened at USD 17,745/mt and closed at USD 17,800/mt overnight, up USD 46/mt from a day earlier, with the highest price at USD 17,800/mt and the lowest price at USD 17,431/mt. Daily trading volumes were 2,596 lots, up 716 lots. Positions were 95,422 lots, down 596 lots. LME nickel inventories were 83,940 mt, down 810 mt from a day earlier.

Concern over the European debt crisis and expectation over global economy slowdown continued to weigh on market sentiment. Moody's Investors Service Inc. warned on Monday that France's credit outlook faced threats in view of increasing government financing cost and weakening economic growth prospective. In addition, the congressional "super committee" which was set to cut 1.2 trillion dollars of US deficit over next 10 years before the deadline on Wednesday, has declared a failure of the bipartisan talks, triggering investors concern over the US economic outlook. Coupled with lower-than-expected US economic data, global risk assets were weighed down further, and the US and European equity markets plunged as well. Boosted by risk aversion sentiment, the US dollar advanced, but commodity market experienced severe sell-offs overnight.

LME nickel prices were weighed down by strong US dollar and fell below USD 17,500/mt during the Asian and early European trading hours, but pared losses to close at USD 17,800/mt, up USD 46/mt from a day earlier. Negative news dragged down base metal prices overnight, but LME nickel prices finally closed with slight gains, the only base metal product ending with gains overnight.
 

nickel; nickel price; LME nickel price; spot nickel price; European debt crisis; US dollar; euro; Nov. 22

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