SMM Morning Review - 2010/9/6 Nickel Market

SHANGHAI, Sep. 6 (SMM) -- Last Friday, LME nickel prices opened at USD 21,700/mt and closed at USD 21,774/mt, up by USD 74/mt from a day earlier. Daily trading volumes were 2,095 lots and positions were 97,899 lots. LME nickel inventories were down by 156 mt to 120,354 mt.

LME nickel prices closed with slight losses after a better-than-expected US nonfarm payroll report was offset by weak non-manufacturing data and a spate of profit-taking. The US Department of Labor release on last Friday that the US nonfarm payrolls reduced by 54,000, the previous estimation 100,000, and the revised data in July were 54,000, the previous reading 131,000. The US unemployment rate was 9.6% in August and the previous estimation was 9.6%. The release of the data increased investors’ optimistic outlook towards economic recovery, triggering buying across the board. The US Institution of Supply Management, the US non-manufacturing index was 51.5 in August, lower than previous estimation of 53.5, dampening prices before closing. The US dollar index sipped significantly last Friday, and fell to the lowest below 82.

It is expected that LME nickel prices will move between USD 21,500-22,500/mt on Monday.

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