SMM Morning Comment For Nickel Market On August 17

SHANGHAI, Aug 17 (SMM) –

SHFE 2309 nickel contract opened at 163,330 yuan/mt at the night session on August 16, and closed at 162,300 yuan/mt, down 2,680 yuan/mt. Trading volume dropped by 15,175 lots, and open interest increased by 1,231 lots.

On the macro side, the Indonesian nickel mine investigation may reduce the nickel mine supply, making the SHFE nickel volatile yesterday. On the fundamentals, daily spot market transactions were still weak. The upstream was eager to ship to at lower premiums, but the downstream purchasing sentiment didn’t give a positive response. Overall, it is expected that the subsequent nickel price will shock downward.