SMM Morning Review - 2010/1/15 Nickel Market

SHANGHAI, Jan. 15 (SMM) -- On Thursday, LME nickel prices opened at USD 18,250/mt and closed at USD 18,445/mt, with the highest level at USD 18,800/mt and lowest level at USD 18,150/mt. Daily trading volumes were 2,397 lots and positions were 97,894 lots.

The US Department of Labor released on Thursday that initial jobless claim climbed to 444,000 on January 9th, which was higher than expectation of 437,000. The US Department of Commerce announced on Thursday, retail sales in December were down 0.3% MoM, which was lower than previous expectation of 0.5% growth. Unfavorable economic data depressed prices of commodities. Prices of crude oil fell below 79 and will test support line at 78 today, and LME copper prices declined all day but are expected to recover from pessimistic sentiment caused by previous panic selling, showing optimistic view towards future economic outlook.

China's central bank announced on January 14th to maintain rate of its three-month bills flat with the level of last week, which might be interpreted that this announcement was to ease market concern that monetary policy might be tightened after the central bank released a series of measures to tight liquid. This policy will also help further stabilize the panic financial market and  to boost investors' confidence recently. It is expected that LME nickel prices will still receive momentum to climb up and will move in the USD 18,000-18,600/mt range.

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