SMM Morning Comment For Nickel Market (Feb 7)

SHANGHAI, Feb 7 (SMM) – Overnight, the most-traded SHFE nickel contract opened at 124860 yuan/mt, and closed at 124960 yuan/mt, down 100 yuan/mt. Trading volume rose 70399 lots, and open interest decreased by 3598 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.