On September 20, the opening price of the SS2311 contract today was 15,390 yuan/ton, and the closing price was 15,475 yuan/ton, which was an increase of 80 yuan/ton from the closing price on the previous trading day. Intraday trading was weaker than the previous trading day, with trading volume increasing by 46,400 lots and open interest decreasing by 997 lots. This shows that there is a strong wait-and-see atmosphere between bulls and shorts today. Both parties have reduced transactions, and the shorts have admitted defeat and began to actively cover and close positions to push up prices. Although the short side takes the initiative to close the position, it is more rational and has no urgency but seeks the ideal price. The main reason is that today's spot market transactions are dull and spot prices are running smoothly. Spot prices have risen today, ranging from 50 yuan/ton to 295 yuan/ton, and futures prices have been under pressure to rise. On the macro front, last week focused on the U.S. Department of Labor’s non-seasonally adjusted CPI annual rate of 3.7% in August, which was higher than the previous market expectation of 3.6% and also higher than the previous value of 3.2%. The data reflects that inflation in August rebounded beyond market expectations, but core CPI maintained a downward trend. The market's expectations for an interest rate hike in September are still low, but expectations for future interest rate cuts are still uncertain. Overall, the macroeconomic negative factors facing nickel prices have weakened, but interest rates will be cut during the year. Expectations have declined, and it is difficult to have a positive effect on commodities.
Written by SMM Nickel Research, if you have any questions about the nickel market, please don't hesitate to talk with me Fancyli@smm.cn
