[SMM Nickel Midday Review] Nickel prices dropped slightly on November 4, while the US dollar index continued its rebound toward the 100 mark.

SMM Nickel November 4 News:

Macro and Market News:

(1) US Treasury Secretary Besant stated that the US might impose additional tariffs on China if China continues to block rare earth exports. Foreign Ministry Spokesperson Mao Ning stated at the regular press conference held yesterday that regarding China's rare earth export control policy, the competent Chinese authorities have repeatedly clarified their stance. The urgent priority is for both China and the US to earnestly implement the important consensus reached by the two heads of state at the Busan meeting, injecting more stability into China-US economic and trade cooperation and the world economy.

(2) Affected by declining output and weak demand, US manufacturing activity contracted for the eighth consecutive month in October. The Institute for Supply Management (ISM) Manufacturing Index fell by 0.4 to 48.7.

Spot Market:

On November 4, the SMM #1 refined nickel price was 120,300-123,000 yuan/mt, with an average price of 121,800 yuan/mt, down 200 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 2,500-2,700 yuan/mt, with an average premium of 2,600 yuan/mt, flat from the previous trading day. The spot premium/discount quotation range for mainstream domestic brands of electrodeposited nickel was -200-300 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2512) opened lower and moved lower, mainly moving sideways in the doldrums during the session. By the midday close, it was reported at 120,410 yuan/mt, down 0.41%.

Recently, the US dollar index has rebounded consecutively to near the 100 integer mark. The US Fed is expected to pause further interest rate cuts originally scheduled for December, and hawkish expectations are providing support for the US dollar. The strengthening dollar is putting some pressure on nonferrous metal prices. Nickel prices are expected to continue moving sideways, with a reference price range of 119,000-123,000 yuan/mt.