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SMM Nickel Market Morning Review (2013-3-7)
Mar 7,2013 09:50CST
price review forecast
LME nickel prices are unlikely to fall and shall continue to move between USD 16,400-16,800/mt, and Shanghai nickel spot prices will move between RMB 116,000-118,000/mt on Thursday.

SHANGHAI, Mar.7 (SMM) -- LME nickel for delivery in three months opened at USD 16,680/mt and closed at USD 16,550/mt on Wednesday, down USD 123/mt from a day earlier, with the intraday high at USD 16,740 mt and the lowest price at USD 16,535/mt. Daily trading volumes were 2,275 lots, up 884 lots. Positions were 115,189 lots, down 1,936 lots. LME nickel inventories were 161,022 mt, up 474 mt.

During the Asian trading hours, LME nickel prices fluctuated narrowly between 5-day and 10-day moving average and moved in the USD 16,600-16,700/mt range. During the European and US trading hours, the US February ADP employment data increased to 198,000, beating market expectation of 170,000. In response, the US dollar index surged to 82.50, which weighed down the LME nickel prices to close at USD 16,550/mt, down USD 123/mt from a day earlier.

The US February ADP employment payrolls increased by 198,000, higher than market expectation. New payrolls were 77,000 at companies with employees between 1-49, 65,000 at companies with employees between 50-499, and 57,000 at t companies with employees over 500. Meanwhile, Republican-controlled House passed a bill Wednesday afternoon to prevent a government shutdown when the current funding expires on March 27, while keeping in place the sequester. The legislation is scheduled to be voted by the Senate next week. In addition, the Beige Book Reports from the twelve Federal Reserve Districts indicated that economic activity generally expanded at a modest to moderate pace since the previous Beige Book posted on Jan. 16.

In the euro zone, the euro slipped slightly on the stalemate of the Italian political condition. Meanwhile, the euro zone exports for 4Q fell by 0.9%, the largest decline since 1Q 2009, which further weighed down the euro.

In China, China’s fiscal revenue during the first two months totaled RMB 2.24 trillion, up RMB 150.8 billion, or up 7.2% YoY, far blow the average level of 12.8% in 2012, which was mainly due to China’s economic growth trend and structure tax cut as well as market concern over inflationary pressure amid global loose monetary policy and high M1 and M2 in China.

LME nickel price movement is subject to US dollar movement trend. 

LME nickel price
Shanghai nickel spot price

For queries, please contact Frank LIU at liuxiaolei@smm.cn

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