SMM Morning Comment For Nickel Market On December 19

Overnight, the most-traded SHFE nickel contract opened at 133,540 yuan/mt, and closed at 133,390 yuan/mt, up 1310 yuan/mt. Trading volume rose 1,020 lots, and open interest decreased by 7,136 lots. At the macro level, the range of interest rate for December remained unchanged by US Fed and it is expected that the US Fed will lower interest rate for three times next year. On fundamentals, affected by significant price reduction of nickel sulphate and other factors, it is now profitable to produce refined nickel using nickel sulphate. It is expected to see the supply growth of refined nickel in December.