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SMM Nickel Market Morning Review (2013-7-8)
Jul 8,2013 10:33CST
price review forecast
Source:SMM
LME nickel prices opened at USD 13,870/mt last Friday and hit a low of USD 13,298/mt.

SHANGHAI, Jul. 8 (SMM) – LME nickel prices opened at USD 13,870/mt last Friday and hit a low of USD 13,298/mt due to the rising US dollar caused driven by the above-expected US nonfarm payrolls and the negative news from Portugal. Prices then gained support at USD 13,298/mt and finally closed at USD 13,310/mt, down USD 507/mt or 3.67% from the previous trading day. Trading volumes were up 2,899 lots to 4,342 lots, and positions increased 3,465 lots to 126,698 lots. LME nickel inventories climbed 3,264 mt to 193,776 mt.

It was announced last Friday that US non-farm payrolls increased 195,000 in June, well above the 165,000 expected. The unemployment rate held at 7.6%, also beating the 7.5% forecast. These figures signal strong recovery in the US labor market, evidence of the US economic recovery as well. Thanks to this, the Dow Jones Industrial Average closed up 0.98% at 15,135.84 points. The NASDAQ gained 1.04% to finish at 3,479.38 points. The S&P 500 ended 1.02% higher at 1,631.89 points. On the other hand, recovery in the US job market raised anticipation that the Fed will end QE early, sending US government bond yields soaring. The US dollar index hit a three-year high of 84.56 before closing at 84.43. It is widely believed the US dollar index will extend gains for the near term.     
 
On July 8, spot nickel prices in China are expected to fall to RMB 94,000-95,500/mt. 
LME nickel price
US nonfarm payrolls

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