[Ni] SMM Morning Review - 2009/10/19 Nickel Market

SHANGHAI, Oct. 19 (SMM) -- LME nickel prices opened at USD 18,845/mt, but later fell rapidly to USD 18,480/mt due to negative economic data in the US, since the US banks suffered a loss of Cents 26/share in 3Q, and The Reuters / University of Michigan consumer confidence index in September fell to 69.4, lower than previous market forecast of 73.3. LME nickel prices rebounded finally to USD 18,700/mt driven up by the positive US industrial output in 3Q released by the Fed.

    The current actual demand for base metals became the main concern of investors. The Reuters / University of Michigan consumer confidence index in September fell to 69.4, lower than previous market forecast of 73.3. In addition, LME copper inventories climbed increasingly, and consumers said current demand was weak in LME annual seminar, which caused base metals to be left in the cold by investors recently, so base metal prices will not likely report improvement in the near future.

    LME nickel prices are expected to move in the USD 18,500-19,000/mt range today. 

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