SMM Morning Comment For Nickel Market (Feb 6)

SHANGHAI, Feb 6 (SMM) – Overnight, the most-traded SHFE nickel contract opened at 126870 yuan/mt, and closed at 124860 yuan/mt, down 1570 yuan/mt. Trading volume rose 70756 lots, and open interest increased by 5982 lots. On the macro front, the Federal Reserve's interest rate meeting announced on the evening of February 1st showed that the interest rate range for February would remain unchanged. Powell said that expectations for an interest rate cut during the year still exist, but there is no possibility of an interest rate cut in the short term. From a fundamental point of view, transaction in the spot market has cooled down as downstream pre-holiday stocking has basically ended. With new arrivals, the supply of pure nickel has increased. Nickel price is expected to swing on a soft note.