Prices settle after sharp decline

摘要

After slipping to 6,530 dollars/tonne on August 6, LME nickel prices improved and have stabilised in the range of 6,600-6,800 dollars/tonne. Prices picked up from the month's lows as both physical traders and funds resumed purchasing after liquidating holdings in late July amid rising concern over the state of the global economy. LME nickel prices spent late August at the higher end of the range, briefly breaking out to reach 6,905 dollars/tonne on August 28, however, prices reversed their gains in early September. Nickel prices slipped to between 6,600-6,700 dollars/tonne at the start of September, with much of the softening attributed to slumping equity markets.Equity markets are off to a slow start in September, with the downturn prompted by the release of negative economic data as well as the skittishness of investors in the run-up to September 11. Furthermore, the month of September is traditionally a difficult time for the equity markets.