SMM Morning Comment For Nickel Market On September 20

SHANGHAI, Sep 20 (SMM) – Overnight, the most-traded SHFE nickel contract opened at 162,250 yuan/mt, and closed at 161,670 yuan/mt, down 1,230 yuan/mt. Trading volume dropped by 29,007 lots, and open interest decreased by 2,008 lots. On the macro front, market participants should pay attention to the Fed’s interest rate decision on September 21, CST. The current market expectation is 5.50%, which is unchanged from the previous value. Market participants mostly believe that the Fed won’t raise interest rates this time, which will have a positive effect on commodities. In terms of fundamentals, as advance purchasing came to an end, yesterday’s spot market transaction activity declined. In summary, it is expected that nickel prices may continue to fluctuate downward in the future.