SMM

SHANGHAI, December 1(SMM) – Overnight, the most-traded SHFE nickel contract opened at 131590 yuan/mt, and closed at 131210 yuan/mt, up 100 yuan/mt. Trading volume rose 19867 lots, and open interest increased by 1955 lots. From a macro perspective, the Federal Reserve continues to be dovish and a number of data reflect the economic decline in the US. Market expectations for the Federal Reserve to cut interest rates have increased, boosting commodities. From a fundamental perspective, pure nickel social inventories still show a trend of accumulation, and downstream orders have not picked up significantly yet, reflecting the poor transaction atmosphere in the market. Nickel price is expected to move rangebound.