SHFE Nickel Ends Lower (2016-10-26)

SHANGHAI, Oct. 26 (SMM) – On Tuesday’s night trading, SHFE 1701 nickel started at RMB 81,700/mt and climbed to RMB 82,300/mt. The contract later dropped to the 20-day moving average and finally closed at RMB 81,490/mt.

On Wednesday, SHFE 1701 nickel opened at RMB 81,500/mt and rebounded after a small decline. The contract later fell below the 60-day moving average and closed mid-day trading at RMB 81,150/mt. During the afternoon trading, SHFE 1701 nickel stayed weak and fell below the 5 and 40-day moving averages to RMB 80,590/mt. The contract later rallied slightly and finally ended at RMB 81,050/mt, down 0.15%. Trading volumes fell 44,000 to 540,000 lots and positions dropped 1,162 to 512,000. China’s imports of nickel ore, most from the Philippines, grew in September on a monthly basis, according to China Custom’s data, which is higher than expectation.

The nickel market is weak, especially when compared with other base metals. SHFE 1701 nickel will lack rising strength on Wednesday’s night trading.