SMM Morning Comment For Nickel Market On January 26

Overnight, the most-traded SHFE nickel contract opened at 130370 yuan/mt, and closed at 129720 yuan/mt, down 60 yuan/mt. Trading volume rose 7374 lots, and open interest increased by 908 lots. The inflation indicator favored by the Federal Reserve will be released on Friday, and market expectations for a March interest rate cut have "cooled". In addition, the Bank of Japan stated that it will continue to maintain ultra-loose monetary policy. From a fundamental point of view, nickel price in spot market rose due to the impact of rising SHFE nickel price, and the transaction sentiment in the spot market has cooled down. With the arrival of some pure nickel, the supply has increased. Nickel price is expected to swing on a soft note.