SHANGHAI, Sept. 7 (SMM) – On Tuesday’s night trading, SHFE 1701 nickel kept fluctuating after opening at RMB 80,910/mt. Expectation over US interest rate hike in September reduced due to unexpected drop in US’s ISM non-manufacturing reading released on Tuesday’s night. This, combined with lower-expected non-farm payroll report issued on September 2, sent down the US dollar, and gold prices rallied. SHFE 1701 nickel advanced to RMB 81,300/mt and ranged between RMB 80,600-80,900/mt after giving up previous gains. The contract finally closed at RMB 80,740/mt.
On Wednesday, SHFE 1701 nickel started at RMB 80,910/mt and dropped to the 20-day moving average before rebounding, down as low as RMB 80,360/mt, hurt by falling ferrous metals. During the afternoon business, SHFE 1701 nickel moved in a narrow range and ended at RMB 80,920/mt, up 0.67%. Trading volumes reduced 20,000 to 533,000 lots and positions fell 15,000 to 537,000.
Nickel market is expected to be more inclined to market fundamentals, and recent gains in stainless steel prices will help SHFE 1701 nickel find support at the 20-day moving average on Wednesday’s night trading.