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SMM Morning Comment For Nickel Market On December 26

Issued at 2023-12-26



SHANGHAI, December 26 (SMM) – Overnight, the most-traded SHFE nickel contract opened at 130740 yuan/mt, and closed at 130900 yuan/mt, up 160 yuan/mt. Trading volume fell by 13067 lots, and open interest decreased by 8393 lots. From a macro perspective, geopolitical conflicts have blocked transportation in Red Sea area, and the market is worried about Eurasian transportation. From a fundamentals point of view, due to the downward trend of nickel sulphate prices and other raw material prices combined with the recent sideways trading of SHFE nickel, some refined nickel producers that had previously suffered losses have returned to profits, and some smelters have also resumed normal production. Supply is expected to grow. From the demand side, as the holidays are approaching, the sentiment of downstream replenishment is gradually increasing. Therefore, trades in spot market may pick up.

Source: SMM



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