SMM Morning Comment for SHFE Nickel on August 4

SHANGHAI, August 4 (SMM)

SHFE 2309 nickel contract opened at 170,360 yuan/mt at the night session on August 3, and closed at 167,580 yuan/mt, down 4,440 yuan/mt. Trading volume increased 35,781 lots, and open interest increased 9,2342 lots. This indicates that short funds have flowed into the market to open a large number of positions, and prices may continue to decline in the short term. The support for the high prices of SHFE nickel is limited due to the current macroeconomic sentiment gradually dissipating. Nickel prices fluctuated downwards yesterday. In fundamentals, on the demand side, the purchasing intentions of some downstream buyers have increased due to the decline in nickel prices. According to SMM research, the downstream transaction has recovered yesterday. However, the actual downstream demand has not recovered. Downstream buyers restocked only as needed. In summary, it is expected that nickel prices may fluctuate downwards in the future.