SHANGHAI, Jan. 9 (SMM) – LME nickel for delivery in three months opened at USD 17,340/mt and closed at USD 17,351/mt, up USD 38/mt from a day earlier, with intraday high at USD 17,420/mt and the low at USD 17,160/mt.Daily trading volumes were 2,219 lots, up 109 lots. Positions were 116,826 lots, up 771 lots. LME nickel inventories were 143,490 mt, up 1,242 mt from a day earlier.
LME nickel prices initially advanced above 5-day moving average during the morning trading hours, but pared early gains and fell to hit a low at USD 17,250/mt during the afternoon trading hours with decline in China’s Asian stock market. During the European trading hours, economic data released from the euro zone were mixed. However, the better-than-expected factory orders for November from Germany boosted market confidence. Finally, LME nickel prices closed at USD 17,351/mt, up USD 38/mt from a day earlier.
In the euro zone, the unemployment rate surged to 11.8% in November amid financial crisis and austerity measure. Unemployment rate for November in Spain is the highest at 26.6% among other euro zone countries. Germany’s exports for November fell by 3.4% MoM, the largest decline in one year. However, Germany’s monthly rate of factory orders fell 1.8% and annual rate of factory orders fell 1.0%, better than market expectation. The investor confidence index also showed that the euro zone is stepping output of darkest period brought by debt crisis.
In the US, investors’ attention was shifted to the earnings report. Corporate earnings are expected to be slightly better than the third quarter's lackluster results. Meanwhile, the BPC said that the US may report debt default on February 15th, stoking risks that the US credit rating will be cut down.
In China, China’s central bank continued to inject total RMB 38 billion liquidity into market through 7-day and 28-day reverse repos operation.
LME nickel prices are experience correction and LME nickel inventories surged to hit a new high since late 2011 at 143,490 mt. Technically speaking, LME nickel prices will remain week. SMM expects that LME nickel prices will move between USD 17,200-17,600/mt and Shanghai nickel prices will move between RMB 121,000-123,000/mt on Wednesday.