SMM

Overnight, the most-traded SHFE nickel contract opened at 135,950 yuan/mt, and closed at 136,120 yuan/mt, up 880 yuan/mt. Trading volume fell by 85,813 lots, and open interest decreased by 474 lots. From a macro perspective, yesterday's non-ferrous sector mainly benefited from the National Development and Reform Commission saying that with the high-quality development, equipment updates demands will continue to expand, and it is estimated that this is a huge market of more than 5 trillion yuan. Non-ferrous metals, as one of the basic raw materials for the production of various types of equipment, are expected to be the first to benefit. From a fundamental perspective, LME nickel inventory destocked slightly, but trading activities in the spot market were subdued due to rising nickel prices. Nickel prices went up on the back of bullish macro sentiment, but the upside room is likely to be limited since fundamentals have not improved.