SHANGHAI, Feb.19 (SMM) -- LME nickel for delivery in three months opened at USD 18,387/mt and closed at USD 17,940/mt on Monday, down USD 381/mt from a day earlier, with the intraday high at USD 18,387 mt and the lowest price at USD 17,816/mt. Daily trading volumes were 4,164 lots, up 2,293 lots. Positions were 120,463 lots, up 1,962 lots. LME nickel inventories were 153,270 mt, down 210 mt.
During the Asian trading hours, LME nickel prices plunged to fell below 5-day, 10-day and 20-day moving average and hit a low at USD 17,940/mt after opening at USD 18,387/mt due to rally in the US dollar. During the European and US trading hours, LME nickel prices fluctuated marginally as market was closed on George Washington President's Day. Finally, LME nickel closed at USD 17,940/mt, down USD 381/mt from a day earlier.
ECB President Mario Draghi pointed out that stale interest rate was of significance for economic growth and commodity price stability. If exchange rate of euro continues to grow, economic growth in the euro zone may fall further. It is expected that euro may stabilize around 1.3310.
In China, new loans for January exceeded RMB 1 trillion, and total financing was RMB 2.54 trillion, up RMB 1.56 trillion from a year earlier. The ample liquidity was mainly attributed to economic growth and seasonal factor, but loans may slightly fall in February. Considering stable demand from real economy, new loans for the whole year of 2013 may increase. However, given the upward trend of CPI, China’s central bank may release measure to curb liquidity. Nonetheless, in order to avoid interest rate spread between China and overseas countries, China's interest rate may quite likely to stay stable in the near future.
Close attention should be paid to Germany’s ZEW economic sentiment index for February, which may affect base metal prices. In spot market, overnight LME nickel price plunge will weigh on spot nickel prices to move between RMB 126,500-128,500/mt on Tuesday.