SMM Nickel Market Morning Comment (Mar 12)

Overnight, the most-traded SHFE nickel contract opened at 138,810 yuan/mt, and closed at 137,640 yuan/mt, down 840 yuan/mt. Trading volume fell by 5,825 lots, and open interest decreased by 4,919 lots. On the macro level, Fed officials said the Feb should be able to cut interest rates later this year. The economy and monetary policy are in good conditions. The official said inflation slowed down sharply last year, but the pace may not be sustained this year, requiring policymakers to be cautious. From a fundamental perspective, yesterday’s spot market transactions were weak. Given the nickel prices, downstream manufacturers still focused on destocking. The downstream orders did not improve significantly. Nickel prices are vulnerable to decline.