SHFE Nickel Ends with Small Gains (2016-8-29)

SHFE Nickel Ends with Small Gains (2016-8-29)

SHANGHAI, Aug. 29 (SMM) – On last Friday’s night trading, SHFE 1701 nickel started at RMB 78,310/mt and then grew to RMB 79,280/mt and broke through the 60-day moving average. But later, the contract gave back earlier gains and dived to RMB 77,990/mt, hurt by rising bets for a rate hike by US Fed due to speech delivered by Yellen.SHFE 1701 nickel finally ended at RMB 78,370/mt.

On Monday, SHFE 1701 nickel started at RMB 78,380/mt and then dropped slightly before rebounding. US dollar soared after Yellen’s speech, but nonferrous metals price headed for stability today. Trading volumes fell 194,000 to 205,000 lots and positions decreased by 20,000 in the morning business. During the afternoon business, SHFE 1701 nickel fluctuated weakly and closed at RMB 78,570/mt, down 0.15%. Trading volumes dropped 137,000 to 604,000 lots and positions declined 24,000 to 577,000.

Market players may stay cautious this week before release of US nonfarm payroll report and China’s official manufacturing PMI. Oil prices dropped over 1% on Monday, hurt by rising output in Iraq and failing agreement on output freeze. SHFE 1701 nickel, facing a resistance at the 60-day moving average, should stay at lows on Monday’s night trading.