SHANGHAI, Mar. 14 (SMM)-LME nickel market overnight opened at USD 19,248/mt, with the highest and lowest level of USD 19,580/mt and USD 19,248/mt, respectively. Finally, LME nickel market closed at USD 19,536/mt, up USD 288/mt from a day earlier. Transactions for the day were 2,023 lots, down 464 lots. Positions were 103,209 lots, down 866 lots. Inventories were 96,750 mt, down 114 mt.
During Asian trading hours yesterday, LME nickel prices advanced, and climbed above the 10-day moving averages. LME nickel prices continued its rising pace during the US and European trading hours following the US interest rate meeting , which reported a mild economic recovery in the country, despite of no mention of QE3, helping LME nickel prices close at USD 19,536/mt.
The US Federal decided to leave the extremely low interest rate unchanged, and meanwhile said a moderate recovery, but did not mention the introduction of QE3. In other news, Fitch increased the Greece’s long-term foreign and local currency from restricted default to B-, with stable outlook, and upgraded the country’s short-term foreign currency issuer default rating from C to B, a sign of optimism towards the Greek rescue plan. In addition, the US reported stronger retail sales for February. A series of positive news boosted market confidence, allowing Europe and US equities to gain, and LME metal prices to finish higher.
Market risk aversion sentiment has eased following favorable news, and LME nickel prices are expected to remain strong, with prices between USD 19,400-19,800/mt. Domestic nickel prices will likely advance to RMB 136,000-137,500/mt.