SMM Morning Review - 2010/9/8 Nickel Market

SHANGHAI, Sep. 8 (SMM) -- On Tuesday night, LME nickel prices opened at USD 21,750/mt and closed at USD 22,150/mt, up by USD 10/mt from a day earlier, with the highest price at USD 22,175/mt and the lowest price at USD 21,500/mt. Daily trading volumes were 2,326 lots and positions were 97,883 lots. LME nickel inventories were down by 396 mt to 119,490 mt.

LME Base metals closed mostly lower on Tuesday after renewed economic concerns drove investors into the dollar. The report that cast doubt over the reliability of European bank stress test results triggered over sovereign debt concern in the EU. The euro was also pulled down by 1.2% or to 1.2720 against the US dollar on news that Germany's 10 biggest banks may need about EUR 105 billion in fresh capital. Base metal prices remained weak due to soft equity markets in the EU and the US. China’s NPI output cut will lend support for nickel fundamentals.

It is expected that LME nickel prices will move between USD 21,500-22,300/mt on Wednesday.

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