SMM Morning Comment For Nickel Market On October 12

SHANGHAI, Oct 12(SMM) – Overnight, the most-traded SHFE nickel contract opened at 151,190 yuan/mt, and closed at 150,710 yuan/mt, down 940 yuan/mt compared with the previous trading day. Trading volume dropped by 6,604 lots, and open interest increased by 4,054 lots. On the macro front, CME Group’s Fed Watch Tool showed that the market expected the probability of the Federal Reserve maintaining current interest rates in November to be 85.7%, but current US inflation had not yet reached the ideal level. In the fundamentals, the demand for domestic electrowinning nickel remained stable and the purchase amount of Jinchuan nickel plate was acceptable. Norilsk nickel transactions in spot market were sluggish and dropped overall after the holiday. In addition, yesterday’s warehouse receipts surged by 1,800 mt and accumulated. In summary, it is expected that nickel prices will fluctuate in the future.