SMM

Overnight, the most-traded SHFE nickel contract opened at 131320 yuan/mt, and closed at 130400 yuan/mt, down 1400 yuan/mt. Trading volume rose 33170 lots, and open interest increased 628 lots. On the macro front, the U.S. non-seasonally adjusted CPI rate recorded 3.1% in November, down 0.1% from the previous month, in line with market expectations, but it is worth noting that the core CPI rate has rebounded. From a fundamental perspective, the supply of pure nickel has declined slightly, but downstream demand for pure nickel is limited. Nickel price is expected to move rangebound, with little upward momentum.