SMM Morning Review - 2012/6/8 Nickel Market-Shanghai Metals Market

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SMM Morning Review - 2012/6/8 Nickel Market

SMM Insight 09:56:34AM Jun 08, 2012 Source:SMM

SHANGHAI, Jun. 8 (SMM) – LME nickel prices overnight opened at USD 16,150/mt, with the high end USD 16,630/mt, finding support at USD 16,025/mt. Finally, LME nickel prices closed at USD 16,630/mt, up USD 470/mt. Trading volumes decreased by 192 lots to 3,268 lots, and total position was 114,267 lots, down 192 lots. LME nickel inventories were 106,116 mt, down 1,608 mt.

LME nickel prices fluctuated narrowly after opening. But as Spain,s 10-year government bond yields rose by 2 basis points to 6.27%, and since Italy,s 10-year government bond yields rose by 4 basis points to 5.68%, LME nickel prices fell slightly. China,s central bank unexpectedly lowered interest rates, boosting market confidence and pushing up LME nickel prices. Bernanke did not mention any possibility of QE3 implementation while gold and crude prices and non-US dollar currencies plunged, but LME nickel prices were barely affected. That is because LME nickel prices will rally after a plunge, and expectations of US economic growth were boosted despite weakening speculations of QE3 implementation, causing factors weighing down LME nickel prices to ease. Finally, LME nickel prices closed at USD 16,630/mt, up USD 470/mt.

China,s interest rates decreases boosted the market, while weakening speculations of QE3 implementation unexpectedly pushed up LME nickel prices, with risk aversion appetite dominating the market. In this context, LME nickel prices should move between USD 16,000-16,700/mt today, and domestic spot nickel prices should rise to RMB 119,000-125,000/mt.

 

SMM Morning Review - 2012/6/8 Nickel Market

SMM Insight 09:56:34AM Jun 08, 2012 Source:SMM

SHANGHAI, Jun. 8 (SMM) – LME nickel prices overnight opened at USD 16,150/mt, with the high end USD 16,630/mt, finding support at USD 16,025/mt. Finally, LME nickel prices closed at USD 16,630/mt, up USD 470/mt. Trading volumes decreased by 192 lots to 3,268 lots, and total position was 114,267 lots, down 192 lots. LME nickel inventories were 106,116 mt, down 1,608 mt.

LME nickel prices fluctuated narrowly after opening. But as Spain,s 10-year government bond yields rose by 2 basis points to 6.27%, and since Italy,s 10-year government bond yields rose by 4 basis points to 5.68%, LME nickel prices fell slightly. China,s central bank unexpectedly lowered interest rates, boosting market confidence and pushing up LME nickel prices. Bernanke did not mention any possibility of QE3 implementation while gold and crude prices and non-US dollar currencies plunged, but LME nickel prices were barely affected. That is because LME nickel prices will rally after a plunge, and expectations of US economic growth were boosted despite weakening speculations of QE3 implementation, causing factors weighing down LME nickel prices to ease. Finally, LME nickel prices closed at USD 16,630/mt, up USD 470/mt.

China,s interest rates decreases boosted the market, while weakening speculations of QE3 implementation unexpectedly pushed up LME nickel prices, with risk aversion appetite dominating the market. In this context, LME nickel prices should move between USD 16,000-16,700/mt today, and domestic spot nickel prices should rise to RMB 119,000-125,000/mt.