Summary of SMM Nickel Morning Meeting on July 28, 2023

SHFE 2308 nickel contract opened at 171,600 yuan/mt overnight, and closed at 170,180 yuan/mt, down 2,810 yuan/mt. Trading volume fell by 31,573 lots, and open interest decreased by 14,543 lots.

On the macro level, the Federal Reserve announced on Thursday that it would raise interest rates by 25 basis points in July, reaching the highest level in 22 years, which will suppress commodity prices. From a fundamentals point of view, yesterday's spot premiums plunged sharply, and the sentiment for upstream shipments has intensified. According to SMM research, spot nickel prices were too high, even after spot premiums were lowered. The downstream trade sentiment was low and some downstream plants still have nickel plate inventory, so the spot market turnover was weak yesterday. To sum up, it is expected that the subsequent nickel price may fluctuate downward.