SHANGHAI, Mar.27 (SMM) -- LME nickel for delivery in three months opened at USD 18,250/mt and closed at USD 18,253/mt, up USD 28/mt, with the highest price at USD 18,506/mt and the lowest price at USD 18,150/mt. Daily trading volumes were 2,587 lots, down 749 lots. Positions were 101,461 lots, up 2,632 lots. LME nickel inventories were 97,692 mt, up 48 mt.
LME nickel prices moved stably during Monday’s Asian trading hours due to absence of solid news. However, during the European and US trading hours, base metal prices surged and LME nickel prices also advanced slightly to close at USD 18,253/mt amid US dollar index tumble as Ben Bernanke's remark of monetary loosing was interpreted by market as possible implementation of QE3.
Federal Reserve Chairman Ben Bernanke expressed pessimism over employment market and hinted possible implementation of QE3, which inclined the US dollar index towards downward trend and the euro upward versus the US dollar. The high possibility of QE3 will weigh on the US dollar index, thus lending support for LME nickel prices.
SMM expects that LME nickel prices will move in the USD 18,100-18,700/mt range, and spot nickel prices will remain largely unchanged between RMB 132,500-134,000/mt on Tuesday.