SMM

SHANGHAI, December 20 (SMM) – Overnight, the most-traded SHFE nickel contract opened at 132,820 yuan/mt, and closed at 131,070 yuan/mt, down 2,320 yuan/mt. Trading volume reduced 16,819 lots, and open interest decreased by 5,078 lots. On the macro level, the US Fed has kept the range of interest rate for December stable, but market expects the Fed to lower its interest rate for three times next year. On fundamentals, affected by significant price reduction of nickel sulphate and stabilising SHFE nickel price , it is now profitable to produce refined nickel using nickel sulphate. Therefore, it is expected to see the supply growth of refined nickel in December.