SMM

Overnight, the most-traded SHFE nickel contract opened at 127000 yuan/mt, and closed at 126990 yuan/mt, down 200 yuan/mt. Trading volume fell by 32225 lots, and open interest increased by 590 lots. On the macro front, we need to pay attention to the interest rate meeting to be announced by the Federal Reserve on the evening of February 1. The current market expectation for this interest rate meeting is that interest rate will be kept unchanged. From a fundamental point of view, downstream stocking is about to end, so the transaction sentiment in the spot market has cooled down. With the arrival of some pure nickel, the supply of pure nickel has increased. Nickel price is expected to swing on a soft note.