SMM Morning Comment For Nickel Market On December 28

SHANGHAI, December 28 (SMM) –
Overnight, the most-traded SHFE nickel contract opened at 129,000 yuan/mt, and closed at 129,550 yuan/mt, up 410 yuan/mt. From a macro perspective, along with the fading impact of the shipping crisis, the positive macro sentiment gradually dissipated. From a fundamentals perspective, due to the increase in pure nickel supply and the slower-than-expected growth in downstream demand, the pure nickel inventory has accumulated for two consecutive weeks. To sum up, the positive macro sentiment has been digested, but the fundamentals situation is still poor. It is expected that nickel prices may continue to decline in the future.