SMM Morning Review - 2012/5/23 Nickel Market

SHANGHAI, May 23 (SMM) – LME nickel prices overnight opened at USD 17,200/mt last Friday, with the high end USD 17,213/mt, finding support at USD 16,900/mt. Finally, LME nickel prices closed at USD 16,940/mt, down USD 230/mt. Trading volumes decreased by 640 lots to 1,939 lots, and total position was 104,521 lots, up 668 lots. LME nickel inventories were 105,732 mt, up 390 mt.

LME nickel prices rose on Monday, but gave back previous gains due to pessimism. LME nickel prices inched down during Asian trading hours, and finally closed at USD 16,900/mt, down USD 230/mt.

Greece's former president Papademos said Greece will likely be forced out of the euro zone, and its default and leaving the euro zone will lead to losses of EUR 500 million to EUR 1 trillion. Investors preferred US dollars as US economy recovers better than Europe. Unstable political situation in Europe caused the US dollar index to rise, pushing down the euro. The US dollar index hit a record high 81.80 since September 2010, so base metal prices should be weighed down recently.