SMM

On December 5th, the most-traded SHFE nickel contract opened at 128,140 yuan/mt, and closed at 125,120 yuan/mt, down 3,340 yuan/mt. Trading volume fell by 88,786 lots, and open interest increased by 658 lots. From a macro perspective, the Federal Reserve continues to be dovish and a number of data reflect the economic decline in the U.S. market. Market expectations for the Federal Reserve to cut interest rates have increased, benefiting commodities. From a fundamentals perspective, pure nickel social inventories still show a trend of accumulation, and downstream orders have not picked up significantly yet, reflecting the poor transaction in the market yesterday. Nickel price is expected to decline and then move rangebound.