SHANGHAI, Nov. 30 (SMM) – On Tuesday’s night trading, SHFE 1701 nickel started at RMB 93,350/mt and then fluctuated in a narrow range. The contract later dived below the 20-day moving average to RMB 90,240/mt and finally closed at RMB 91,540/mt.
On Wednesday, SHFE 1701 nickel opened at RMB 91,600/mt and then stabilized around the moving average at lows. The contract later dived with falling ferrous metals, SHFE 1701 lead and SHFE 1701 zinc, down as low as RMB 88,810/mt. During the afternoon trading, SHFE 1701 nickel stabilized between RMB 89,300-90,000/mt and finally ended at RMB 89,870/mt, down 5.76%. Trading volumes fell 60,000 to 440,000 lots and positions dropped 30,000 to 210,000. Capitals kept tight in China’s market with rising Shanghai Interbank Offered Rate (Shibor) for 15 days in a row and 7-day Shibor hitting the year’s best. Ferrous metals dropped to their daily downward limits on Wednesday and base metals declined across the board.
SHFE 1701 nickel will meet resistance at the 20-day moving average on Wednesday’s night trading.