SMM Nickel Market Morning Comment (Feb 27)

Overnight, the most-traded SHFE nickel contract opened at 136000 yuan/mt, and closed at 132730 yuan/mt, down 2890 yuan/mt. Trading volume fell by 52673 lots, and open interest decreased by 12820 lots. On the macro front, the sanctions imposed by the United States and the European Union on Russia barely involve nickel, and market sentiment has been digested over the weekend. In addition, Indonesia's RKAB review pace has picked up, and expectations of tight nickel ore supply have also weakened. Therefore, SHFE nickel fluctuated widely yesterday. From a fundamental point of view, affected by the sharp rise in nickel prices last week, downstream companies held back from purchasing amid the current high nickel price. Nickel price is expected to swing on a soft note.