[Ni] SMM Morning Review - 2009/8/3 Nickel Market

SHANGHAI, Aug. 3 (SMM) -- The U.S. Department of Commerce announced last Friday that the annual rate of gross domestic product (GDP) in the US during 2Q contracted by 1.0% on a quarterly basis, with the former value of 6.4% shrinkage, and the estimated value of 1.5% shrinkage. The US economic contraction has been lower than expected, triggering the investors' optimism and weakening the risk aversion of US dollar, so the US dollar fell drastically. The China Central Bank stated that the loose monetary policy will remain unchanged in the short term, which boosted investors' confidence.

    Last Friday, LME nickel increased significantly by 3.18% to USD 17,850/mt, propelled by weakened US dollar and positive economic data, and increases in positions continue. LME nickel prices will continue to fluctuate upward to USD 18,500/mt in the short term.

Copyright © 2009, CBI (Shanghai) Co., Ltd. All Rights Reserved.

None of this material may be used for any commercial or public use in any form or means, without the prior written consent of CBI China. For reproduction issue, please contact us by email: metalresearch@cbichina.com or tel:86-21-51550040