SHANGHAI, Nov. 7 (SMM) – On last Friday’s night trading, US nonfarm payroll report was negative and US dollar index dropped. SHFE 1701 nickel opened at RMB 82,980/mt and rose to above the moving average, up to as high as RMB 83,970/mt. The contract finally closed at RMB 83,580/mt.

On Monday, SHFE 1701 nickel started at RMB 83,560/mt. Investors were looking for buying opportunities for products, whose prices are now low, and market fundamentals are positive. Nickel ore supplied from Philippines declined to a low level with arriving of rainy season in November, raising new expectation of tight nickel ore supply. This, combined with rising NPI in China’s market, supporting SHFE 1701 nickel. SHFE 1701 nickel increased significantly by RMB 5,000/mt, hitting a new high since July 23 2015. During the afternoon trading, SHFE 1701 nickel kept rising momentum to its daily upward limit and advanced to RMB 88,430/mt, the highest level since July 7 2015. The contract later dropped slightly with exit of longs and finally closed at RMB 87,820/mt, up 5.27%. Trading volumes surged 515,000 to 1.05 million lots and positions increased 38,000 to 531,000. LME nickel met resistance at USD 11,030/mt on Monday and dropped from the daily high of USD 11,015/mt.

SHFE 1701 nickel will lack of rising strength on Monday’s night trading and market should be wary on chasing for highs.