SMM

[2.8 Nickel Morning Meeting Minutes]      On February 7, the opening price of the main Shanghai nickel contract was 123,860 yuan/ton, and the closing price was 124,050 yuan/ton, a decrease of 910 yuan/ton from the closing price of the previous trading day. Intraday trading was weaker than the previous trading day, with a decrease of 25,935 lots in volume and a decrease in open interest of 2,623 lots. This combination indicates that both the long and short sides have reduced their trades and are inclined to wait and see, but the bulls are actively closing their positions. The decrease in trading volume shows that the long position is more rational, and there is no urgency but the ideal price, so the market is mostly falling gently, and the probability of a sustained decline is high. On the macro front, the Federal Reserve's interest rate meeting announced on the evening of February 1 that the interest rate range for February remained unchanged, and Powell said that the expectation of interest rate cuts within the year still exists, but there is no possibility of interest rate cuts in the short term. From a fundamental point of view, today's spot market is affected by the downstream stocking rhythm coming to an end, the transaction sentiment in the spot market has cooled down, and the supply of pure nickel has increased due to the arrival of some pure nickel. To sum up, it is expected that the follow-up nickel price may fluctuate weakly.