Indonesian nickel ore quota approvals accelerate, Shanghai nickel fluctuates downward today [SMM Nickel Futures Review]

SMM, March 19th: During the trading session on March 19th, the opening price of the main contract for Shanghai nickel was 139,600 yuan/ton, and the closing price was 137,460 yuan/ton, a decrease of 2,490 yuan/ton from the previous trading day's closing price. Intraday trading weakened compared to the previous trading day, with a decrease of 15,008 lots in trading volume and a decrease of 859 lots in open interest. This combination indicates that both long and short parties have reduced trading and tend to wait and see, but long positions are actively closing. The decrease in trading volume indicates that long positions are closing more rationally, without urgency but seeking ideal prices. Therefore, the market is mostly experiencing a gradual decline, with a higher probability of sustained downward movement. From a macro perspective, the number of initial jobless claims in the United States recorded 209,000 for the week ending March 9th, both lower than the previous and expected values, reflecting a slight improvement in the immediate US labor market. From a fundamental perspective, Indonesia announced this afternoon that it has completed approvals for 107 companies, accelerating the progress of nickel ore approvals. Market expectations for tight raw material supply are beginning to weaken, leading to a sharp decline in the afternoon session. In addition, according to SMM research, the tight pattern of intermediate product production is expected to ease in April. Overall, nickel prices are expected to continue weak fluctuations in the future.