SMM Morning Comment For Nickel Market On August 2

SHANGHAI, Aug 2 (SMM) –

SHFE 2309 nickel contract opened at 172,000 yuan/mt at the night session on August 1, and closed at 171,270 yuan/mt, down 990 yuan/mt. Trading volume fell by 9161 lots, and open interest decreased by 9740 lots. This indicates that long investors are eager to close their positions, which could cause short-term prices for nickel to continue to decline.
On the macro level, SHFE nickel fluctuated downwards yesterday due to the gradual fading of macro positive sentiment. From a fundamental perspective, the benchmark for the spot premium has changed from 2308 to 2309 contract yesterday. 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, the willingness to purchase in downstream 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.