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SMM Nickel Market Morning Review (2013-4-23)
Apr 23,2013 09:59CST
price review forecast
LME nickel price overnight opened at USD 15,175/mt, with the high end of the price range USD 15,368/mt, and finding support at USD 15,092/mt.

SHANGHAI, Apr. 23 (SMM) – LME nickel price overnight opened at USD 15,175/mt, with the high end of the price range USD 15,368/mt, and finding support at USD 15,092/mt. Finally, LME nickel prices closed at USD 15,301/mt, up USD 124/mt from the previous trading day. Trading volumes decreased by 737 lots, to 2,746 lots, and total positions decreased by 29 lots, to 117,708 lots. Inventories grew by 1,680 mt, to 173,976 mt.

LME nickel prices opened at USD 15,175/mt. With the lack of economic news, LME nickel prices rose initially but then fell during Asian trading hours, inching down after briefly touching USD 15,250/mt, and dipping to a record low for the year of USD 15,092/mt. But LME nickel prices rebounded due to positive news during European and US trading hours, with prices closing at USD 15,301/mt, up USD 124/mt.

No major news was released in overnight market. The earlier news that Italian parliament re-elected the current President Giorgio Napolitano helped briefly boost the market, which to some extent paved the way for the creation of a new coalition government in the country. As a result, equities both in Italy and Spain registered bigger gains, with Spanish 10-year bonds returning 4.5% for the first time since 2010.

In the US, the National Association of Realtors (NAR) reported that existing home sales fell 0.6% in March to a seasonally adjusted annual rate of 4.92 million, below market expectations of 5 million. Despite March's decline, sales were up 10.3% from the sale period in the prior year.  Supply in the US existing home market remained tight, and low inventories of existing homes for sale constrained the activity, according to NAR.  

In China, the 7.0-magnatitude earthquake in Ya'an, Sichuan province sent domestic stock down slightly 0.11% on Monday, and all losses were pared at the tail of trading. Economic losses by the earthquake are expected to account for 0.2% of China's total GDP, and any incentive economic measures for post-holiday reconstructing will be limited. In addition, China's newly-increased funds outstanding for foreign exchange came in at RMB 236.302 billion in March. The data grew for a fourth consecutive month, and remained high in March, despite down from a record high of RMB 683.7 billion in January, suggesting that economic recovery and the RMB appreciation have increased foreign capital inflows.

In other markets, the US dollar index was off 0.13 to 82.6. The US and European equities markets were mixed, and LME metals market also staged divided performance. 

LME nickel prices will move between USD 15,200-15,600/mt today. Spot nickel prices in Shanghai are expected between RMB 105,500-107,500/mt.

LME nickel price

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