SMM Nickel Market Morning Review (2014-2-11)

SHANGHAI, Feb. 11 (SMM) - LME nickel prices opened at USD 14,148/mt overnight, with the high end of the price range USD 14,345/mt, and finding support at USD 14,130/mt. Finally, LME nickel prices closed at USD 14,150/mt, down USD 4/mt from the previous trading day. Trading volumes decreased by 1,362 lots, to 4,167 lots, and total positions increased by 5,958 lots to 155,476 lots. Inventories fell by 1,002 mt, to 265,686 mt.

US non-farm employment data released last Friday were mixed. US unemployment continued to fall to 113,000, lower than expectations, and employment rose MoM but fell short of expectations, with 113,000. Indonesian ban on unprocessed ore exports continued to push up nickel prices, with LME zinc prices posting daily gains of USD 189/mt.

The market lacked positive news overnight. LME nickel prices soared slightly after opening due to the return of market players, touching USD 14,345/mt but falling at the end of trading, and finally closing at USD 14,150/mt, up USD 44/mt from the previous day. Trading volumes were down slightly, and total positions increased.

The market will focus on Yellen’s statement at the Congress. LME nickel prices should move between USD 14,100-14,200/mt today.