SMM Comment (July 26) SHFE Nickel Closed With Big Gains And To Be Volatile  

SHANGHAI, Jul 26 (SMM) – SHFE 2308 nickel contract opened at 168,400 yuan/mt overnight, and closed at 170,930 yuan/mt, up 2,020 yuan/mt. Trading volume fell by 10,972 lots, and open interest decreased by 9,378 lots.

From a macro point of view, due to the intensifying conflict between Russia and Ukraine, domestic stimulus policies, and rising Chinese yuan, nickel prices went up.

In terms of fundamentals, according to SMM research, spot nickel prices were too high, even after spot premiums were lowered. This is because SHFE nickel prices exceeded 170,000 yuan/mt. As such, buying willingness of downstream enterprises cooled. Some downstream enterprises still held certain amounts of nickel plate on hand.

To sum up, the current market is intertwined with positive and negative factors. It is expected that the subsequent nickel price may show volatile trend.

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