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SMM Morning Review – 2011/12/5 Nickel Market
Dec 5,2011 09:39CST
smm insight
Source:SMM
Spot nickel prices are expected advance along with LME nickel price increase and will move in the RMB 125,000-126,500/mt range on Monday.

SHANGHAI, Dec.5 (SMM) -- LME nickel prices opened at USD 16,900/mt and closed at USD 17,650/mt last Friday, up USD 855/mt from a day earlier, with the highest price at USD 17,659/mt and the lowest price at USD 16,830/mt. Daily trading volumes were 2,794 lots, down 281 lots. Positions were 104,723 lots, up 1,221 lots. LME nickel inventories were 90,882 mt, down 252 mt from a day earlier.

Last Friday’s non-farm employment data from the US were up 120,000, better than the previous reading of 80,000. Meanwhile, the US unemployment rate for November unexpectedly fell to 8.6%, the lowest since March 2009. Economic data from the US greatly boosted risk appetite and drove commodities and other risk assets to move higher. In addition, positive impact from domestic and overseas monetary policies remained in market sentiment. LME base metal prices were inspired again, and largely advanced across the board last Friday.

LME nickel prices closed with gains last Friday. LME nickel prices moved relatively stable during the Asian trading hours, and continued to advance slightly during the early European trading hours. At the tail of the trading, LME nickel prices advanced to hit a high of USD 17,659/mt and closed at USD 17,650/mt, up USD 855/mt from a day earlier.

Inspired by better-than-expected US non-farm employment data, LME nickel prices advanced robustly. It is expected that LME nickel pries will continued to receive support from upbeat non-farm employment data, but any growths in LME nickel prices will be limited considering that the European debt crisis has not resolved completely. In China’s domestic nickel spot market, spot nickel prices are expected advance along with LME nickel price increase and will move in the RMB 125,000-126,500/mt range on Monday.
 

nickel; nickel price; LME nickel price; spot nickel price; European debt crisis; US dollar; euro; Dec. 5; in the Shanghai nickel spot market;

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