Global Nickel Prices Fluctuate Downward Due to Cumulative Inventory and Incremental Supply Impact [SMM Nickel Futures Briefing]

SMM News on March 4th: During the trading session on March 4th, the opening price of Shanghai nickel main contract was 135,500 yuan/ton, and the closing price was 136,620 yuan/ton, a decrease of 450 yuan/ton compared to the previous trading day's closing price. Trading activities within the session showed strength compared to the previous trading day, with a volume increase of 54,103 lots and a decrease in open interest of 1,575 lots. This combination indicates strong trading interests from both long and short positions. However, the short side is reluctant to increase positions, while the decrease in open interest and price decline indicate that long positions are eager to close, with evident stop-loss behaviors. Therefore, after a significant price drop, once there is an increase in open interest, it indicates that long positions are starting to re-enter, with a higher probability of price rebound. Fundamentally, nickel prices today are under pressure due to significant cumulative inventories domestically and overseas.