SMM Morning Review - 2012/6/11 Nickel Market

SMM Insight 10:20:45AM Jun 11, 2012 Source:SMM

SHANGHAI, Jun. 11 (SMM) – LME nickel prices last Friday opened at USD 16,576/mt, with the high end USD 16,899/mt, finding support at USD 16,207/mt. Finally, LME nickel prices closed at USD 16,819/mt, up USD 189/mt. Trading volumes increased by 840 lots to 4,138 lots, and total position was 115,682 lots, up 1,415 lots. LME nickel inventories were 105,318 mt, down 798 mt.

Germany's import and export data were both lower than expected or previous, while Italy's seasonally adjusted industrial output was also lower, showing eurozone economy is shrinking. As a result, the euro plunged, pushing down LME nickel prices. As the US dollar index plummeted at the end of trading, base metal prices and non-US currencies rebounded slightly. Finally, LME nickel prices closed at USD 16,819/mt, up USD 189/mt.

Risk appetite grew due to positive domestic and European economic news. According to the NBS, China's CCI for May rose 3.0%, 0.4 percentage points smaller than the previous month's increases, and a new low in 23 months. PPI was down 1.4% YoY and 0.4% MoM. China's inflationary pressure eased as showed by the economic data, and China's central bank's lowering interest rates is favorable for economic growth. Besides, Eurozone finance minister agreed to inject extra EUR 100 billion to Spain to support its banking sector.

In this context, LME nickel prices should move between USD 16,790-17,000/mt today, and domestic spot nickel prices should rise to RMB 118,700-123,000/mt.

 

SMM Morning Review - 2012/6/11 Nickel Market

SMM Insight 10:20:45AM Jun 11, 2012 Source:SMM

SHANGHAI, Jun. 11 (SMM) – LME nickel prices last Friday opened at USD 16,576/mt, with the high end USD 16,899/mt, finding support at USD 16,207/mt. Finally, LME nickel prices closed at USD 16,819/mt, up USD 189/mt. Trading volumes increased by 840 lots to 4,138 lots, and total position was 115,682 lots, up 1,415 lots. LME nickel inventories were 105,318 mt, down 798 mt.

Germany's import and export data were both lower than expected or previous, while Italy's seasonally adjusted industrial output was also lower, showing eurozone economy is shrinking. As a result, the euro plunged, pushing down LME nickel prices. As the US dollar index plummeted at the end of trading, base metal prices and non-US currencies rebounded slightly. Finally, LME nickel prices closed at USD 16,819/mt, up USD 189/mt.

Risk appetite grew due to positive domestic and European economic news. According to the NBS, China's CCI for May rose 3.0%, 0.4 percentage points smaller than the previous month's increases, and a new low in 23 months. PPI was down 1.4% YoY and 0.4% MoM. China's inflationary pressure eased as showed by the economic data, and China's central bank's lowering interest rates is favorable for economic growth. Besides, Eurozone finance minister agreed to inject extra EUR 100 billion to Spain to support its banking sector.

In this context, LME nickel prices should move between USD 16,790-17,000/mt today, and domestic spot nickel prices should rise to RMB 118,700-123,000/mt.