SMM Morning Review - 2010/6/21 Nickel Market

SHANGHAI, Jun. 21 (SMM) -- LME nickel prices opened at USD 19,636/mt and closed at USD 19,600/mt on June 18th, down USD 36/mt from a day earlier, with the highest price at USD 19,800/mt and the lowest price at USD 19,250/mt. Daily trading volumes were 1,545 lots and positions were 88,877 lots.

LME base metal prices closed with losses cross the board, which is mainly attributed the weak equity market as well as expected lower demand for metal from China. China's economic growth would slow down in the second half of this year, ending the double-digit increase in the first quarter, according to Xia Bin, a committee member of Central Bank Monetary Policy Committee, reported last Friday. Chinese market investors' confidence was also dampened by remarks of property taxes. Market concern over prospect of the EU debt crisis will continue to weigh the euro, and base metal prices still bear the risks to fall further. In addition, according to economic data from the US, the recovery of real estate industry and employment was lower than market expectation.

It is expected that LME nickel prices will continue to move weakly today between USD 19,300-20,300/mt.

To contact the writer on this report: cracewu@smm.cn

 
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