SMM Morning Comment For Nickel Market On October 19

SHANGHAI, Oct 19(SMM) – Overnight, the most-traded SHFE nickel contract opened at 149,760 yuan/mt, and closed at 149,530 yuan/mt, down 230 yuan/mt. Trading volume dropped by 12,568 lots, and open interest decreased by 3,398 lots.

On the macro front, raising interest rates was on the way, and market was still controversial about whether to it will happen later this year. Currently, prices of US dollar and gold continued to move upward, and commodities were under downward pressure. In the fundamentals, the demand for domestic electrowinning nickel remained stable and the purchase amount of Jinchuan nickel plate was acceptable. Norilsk nickel transactions in spot market were sluggish and demand dropped. In summary, it is expected that nickel prices will continue to decline slightly in the future.