SMM Morning Comment For Nickel Market On January 4

SHANGHAI, January 4 (SMM) –
Overnight, the most-traded SHFE nickel contract opened at 128010 yuan/mt, and closed at 128090 yuan/mt, up 580 yuan/mt. Trading volume rose 220,000 lots, and open interest dcreased by 2356 lots. From a macro perspective, the conflict between the US military and the Houthi armed forces broke out on December 31, 2023, and the Red Sea crisis escalated again, which may further boost market risk aversion. From a fundamental point of view, LME nickel inventory continued to rise, with the increase coming from warehouses in Asia. At the same time, SHFE nickel warrants also climbed, with an increase of 514 mt yesterday. Nickel price is expected to move rangebound.