SHANGHAI, Aug.17 (SMM) – On Tuesday’s night trading, SHFE 1701 nickel started lower at RMB 83,180/mt with falling LME nickel, and later dived below the 40-day moving average to RMB 80,670/mt. The contract then rebounded above the 40-day moving average and closed at RMB 81,140/mt.
On Wednesday, SHFE 1701 nickel started at RMB 81,200/mt and then stabilized between RMB 81,200-81,500/mt. During the afternoon business, SHFE 1701 nickel fluctuated around moving averages and ended at RMB 80,660/mt, down 0.50%. Trading volumes rose significantly by 73,000 to 685,000 lots and positions increased 8,850 to 613,000. Nickel smelters in Inner Mongolia, which cut or halt production previously, originally planned to resume operation today or tomorrow. But the plan will be delayed as environmental protection inspection teams have not wholly left and as local smelters have not receive operation restart notice from government.
SHFE 1701 nickel, finding support at the 40-day moving average, is expected to fluctuate at current price with negative technical indicators.