[Ni] SMM Morning Review - 2009/9/17 Nickel Market

SHANGHAI, Sept. 17 (SMM) -- Yesterday, LME three-month contract nickel prices opened at USD 17,050/mt, with the lowest level of USD 16,885/mt. The Chairman of US Fed Bernanke said on Tuesday that the US economic recession is probably over, and the economic recovery is only mild recovery. Base metal prices jumped yesterday positively affected by the remarks, but nickel prices only reported a growth rate of 1.52% on pessimistic demand outlook of stainless steel. Trading volumes were flat with previous levels.

    There is a sign of entrance of speculative funds with the release of positive economic data recently, and base metal prices will likely climb in the near future, since the continuous declines in the US dollar previously failed to exert positive impact on base metal prices. However, the weak nickel market fundamentals will restrict any upward movement for nickel prices, so LME nickel prices are expected to move in the USD 17,100-17,500/mt range today.

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