Global Nickel Inventories and Increased Supply Impact Nickel Prices Fluctuating Downward [SMM Nickel Futures Commentary]

Published: Mar 4, 2024 18:48

Source: SMM

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SMM News on March 4th: During the trading session on March 4th, the opening price of the main Shanghai nickel contract was 135,500 yuan/ton, and the closing price was 136,620 yuan/ton, a decrease of 450 yuan/ton from the previous trading day's closing price. Trading during the session was stronger compared to the previous trading day, with an increase in trading volume of 54,103 lots and a decrease in open interest of 1,575 lots.

The combination of these factors indicates that both long and short trading interests are strong, but the shorts are unwilling to increase their positions. The decrease in open interest and the price decline indicate that longs are eager to liquidate, with clear signs of stop-loss behavior. Therefore, after a significant price decline, if there is an increase in open interest, it indicates that longs are starting to re-enter the market, and there is a higher probability of price rebound.

From a fundamental perspective, nickel prices are under pressure today due to the significant increase in global inventories last week.

Nickel

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