[SMM Nickel Morning News] overnight Shanghai Nickel concussion Operation Lunni trial 5-day moving average level

SMM, 13 May: in terms of nickel fundamentals, due to the recent improvement in consumption and the contraction of some supply links, the balance between supply and demand as a whole has greatly improved compared with the first quarter, and can achieve a small removal of the storehouse, but at present, the good balance sheet of primary nickel depends very much on the consumption of stainless steel and the contraction of domestic nickel pig iron, while in the aspect of pure nickel, its consumption is relatively scattered downstream, and the consumption of other aspects is inferior to that of stainless steel plate. The recovery of consumption is weaker than that of nickel pig iron, and it will still take time for consumption to pick up. Considering that the epidemic situation in overseas areas is still severe, but the intention to resume production is strong, and the future trend is good, there is still some potential for the performance of nickel prices, and the current price may be on the center of gravity of the annual average price. Yesterday, Shanghai Nickel by the release of CPI, PPI data than expected, resulting in a lack of confidence to reduce positions, Shanghai Nickel fell sharply during the day. Overnight, Shanghai nickel continued the late-day concussion situation, opened at 101450 yuan / ton, and then rose slightly to US $101500 / ton position, bearing pressure 5 / 10 moving average line 101600 yuan / ton fluctuation downward to 100800 yuan / ton near the first line, in this position to support the center of gravity uplink to the daily average line 101200 yuan / ton, then around this position narrow shock, the end of the day short position reduction upward, closed at 101390 yuan / ton, up 350 yuan / ton from the previous trading day settlement price. The trading volume rose 0.35% to 328000 lots, and the position increased by 950 lots to 90000 lots. Overnight Shanghai nickel closed in the Yin Cross yesterday, K column stood in the 5 / 10 moving average and 20 moving average range, shadow line test interval upper and lower limit, today still need to pay attention to Shanghai nickel multi-empty power game under the guidance of the concussion.

Lunni opened at $12390 a tonne yesterday and fell to near the 5-day moving average of $12270 a tonne yesterday. Driven by the Shanghai nickel rally, Lunni rose and reached a daily high of $12475 / tonne. After briefly turning red, Lunni began to come under pressure. After dipping into the lowest point of $12230 / ton in the bottom day, it continued to operate in a narrow range below the daily moving average of $12300 / ton. Entering the European period, Lunni broke through the 12300 resistance shock and moved the center of gravity to the first line of $12310 / tonne. Around this position, the concussion was narrow, and the last session fell slightly to close at $12285 / tonne, down $125 / tonne from the settlement price of the previous trading day. The trading volume decreased by 1.01% to 3822 lots, and the position decreased by 1508 lots to 219000 lots. Lunni closed in the small negative column last night, the shadow line down 5-day moving average, K column stands above the 5-day moving average, Lunni opened at $12280 / ton today, follow-up attention to Lunni 5 / 10 moving average wide shock.

As of 17: 55, Nickel closed at $12290 a tonne, down $120, or 0.97 per cent. The position was reduced by 1508 hands to 219000 hands, and the trading volume was reduced by 2323 hands to 1529 hands. Indonesia introduced an amendment to the tax bill for the local mining industry today, raising the tax on miners' earnings from 1 per cent to 1.5 per cent if approved at the meeting. But Indonesian iron mills still cost much less than elsewhere and are expected to have a limited impact on the fundamentals of the nickel market. At night, pay attention to the annual rate of US quarterly CPI at the end of April and the changes in US API crude oil stocks during the week, which may guide the trend of Lunni in the evening.

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