SMM Nickel Morning Comment

On February 28 evening, the most active SHFE nickel contract prices opened at 135000 yuan/mt and closed at 134290 yuan/mt, an increase of 80 yuan/mt from the closing price of the previous trading day. The trading volume increased by 92272 lots, and the open interest increased by 7924 lots. Market transactions were active, and the power of longs was greater than that of shorts. Both long and short parties were increasing their positions. Bulls were more optimistic about the subsequent rise. From a macro perspective, although RKAB’s review speed has been accelerated, there are still a large number of mining enterprise quotas that have not yet been approved. From a fundamental point of view, affected by the sharp rise in nickel prices last week, although nickel prices declined, the absolute spot price was still at a recent high, and downstream companies were still waiting for a more appropriate time to purchase.