SMM Nickel Market Morning Review (2013-12-2)

SHANGHAI, Dec. 2 (SMM) – LME nickel prices overnight opened at USD 13,410/mt, with the high end of the price range USD 13,646/mt, and finding support at USD 13,350/mt. Finally, LME nickel prices closed at USD 13,487/mt, up USD 62/mt from the previous trading day. Trading volumes increased by 883 lots, to 3,066 lots, and total positions increased by 8,066 lots, to 147,656 lots. Inventories fell by 48 mt, to 25,186 mt.

News released last Friday was positive. Standard & Poor's admitted the AA-/A-1+ rating for China, with the outlook steady. Eurozone unemployment rate and November CPI topped October's levels and expectations. The market was in a buoyant mood due to stable economic growth in the Eurozone, pushing up LME nickel prices to rebound to an intraday high of USD 13,646/mt, but pulled down by the rebounding US dollar index later the day, closing the day up USD 62/mt, at USD 13,487/mt.

LME nickel prices will move between USD 13,470-13,550/mt today, and nickel prices in Shanghai will move between RMB 93,000-94,000/mt.