SMM Morning Comment For Nickel Market On December 29

SHANGHAI, December 29 (SMM) –

Overnight, the most-traded SHFE nickel contract opened at 129650 yuan/mt, and closed at 129510 yuan/mt,down 40 yuan/mt. Trading volume rose 31781 lots, and open interest increased by 1659 lots. From a macro perspective, impact of shipping crisis has faded. Previously, market expected the first interest rate cut by the US Fed in Q1 2024. From a fundamentals perspective, LME nickel inventory yesterday was 4,218 mt, half of which comes from Rotterdam, and the rest mainly from Singapore, Kaohsiung and Busan in Asia. In addition, the Dubai warehouse has also added 190 mt of nickel inventory. According to SMM statistics, LME inventory as of yesterday has rose by 15,684 mt compared to the beginning of the month. To sum up, the positive macro sentiment has been digested, and the fundamentals pressure on nickel prices is still high. It is expected that nickel prices may continue to decline in the future.