SMM

Overnight, the most-traded SHFE nickel contract opened at 138,330 yuan/mt, and closed at 140,290 yuan/mt, up 2,650 yuan/mt. Trading volume rose 177,000 lots, and open interest increased by 7,206 lots. From a macro perspective, the US non-agricultural employment population increased by 275,000 in February after seasonally adjustment, which was the lowest since November 2023. The US unemployment rate rose to 3.9% in February, the highest level since January 2022. Fed is likely to cut interest rate by 25 basis points in June. From a fundamental perspective, yesterday’s spot market transactions were weak. Given the nickel prices, downstream manufacturers still focused on destocking. The downstream orders did not improve. Nickel prices are vulnerable to decline.