SMM Morning Comment For Nickel Market On August 25

SHANGHAI, Aug 25 (SMM) –

SHFE 2309 nickel contract opened at 169,900 yuan/mt at the night session on August 24, and closed at 168,800 yuan/mt, down 280 yuan/mt. Trading volume dropped by 19,647 lots, and open interest decreased by 7,695 lots.

From a macro perspective, the current strengthening US Treasury yields and the US dollar index suppressed the prices of commodities and also affected the non-ferrous metals sector. In the fundamentals, yesterday’s spot market transactions remained depressed. The upstream was eager to ship at lower premium, but the downstream demand was weak due to accumulated inventory from last round of purchases and high SHFE price. Overall, nickel price is expected to be volatile.