SMM Morning Comment For Nickel Market On August 3

SHANGHAI, Aug 3 (SMM) –

SHFE 2309 nickel contract opened at 172,000 yuan/mt at the night session on August 2, and closed at 172,020 yuan/mt, up 750 yuan/mt. Trading volume fell by 34,639 lots, and open interest increased 1,083 lots.

On the macro level, SHFE nickel fluctuated upwards yesterday due to the good news of the Politburo meeting. From a fundamental perspective, excluding the monthly difference factor, the overall spot premium continued to decline. According to SMM research, in demand side, as nickel price was still at a high level, even though the spot premium reduced, the absolute price was still high, downstream enterprises’ willingness to purchase was low, and the warehouses of some downstream factories still had nickel plate stocks, so the transaction in the spot market yesterday was weak. In summary, it is expected that nickel prices will fluctuate rangebound in the future.