SMM

Overnight, the most-traded SHFE nickel contract opened at 141,420 yuan/mt, and closed at 140,280 yuan/mt, down 1,770 yuan/mt. Trading volume rose 36,066 lots, and open interest decreased by 1,621 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 likely to move rangebound.