[SMM Nickel Midday Review] Nickel prices rose slightly on January 29, as the US Fed paused interest rate cuts in January.

SMM Nickel Market Update on January 29:

Macro and Market News:

(1) The US Fed paused at its January interest rate meeting, keeping rates in the 3.5-3.75% range; Milan and Waller supported a 25-basis-point interest rate cut; Powell reiterated that rates are at the high end of the neutral range, policy is not predetermined, decisions are data-dependent, and indicated that policy could be eased if tariff-induced inflation peaks and pulls back, advising his successor to stay away from politics.

(2) Vice Premier Ding Xuexiang met with US Goldman Sachs Group Chairman and CEO David Solomon.

Spot Market:

On January 29, SMM #1 refined nickel prices were 143,600-152,400 yuan/mt, with an average price of 148,000 yuan/mt, up 1,900 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 6,800-7,300 yuan/mt, with an average premium of 7,050 yuan/mt, up 450 yuan/mt from the previous trading day. The spot premiums/discounts quotation range for mainstream domestic brands of electrodeposited nickel was -500-400 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2603) fluctuated upward during the session, closing at 147,470 yuan/mt in the daytime session, up 1.79%.

The continued weakening of the US dollar index provides macro sentiment support for nonferrous metal prices. Indonesia's plan to cut nickel ore RKAB quotas remains the core driver of nickel prices, with frequent supply disruptions at Indonesian mines making nickel prices more likely to rise than fall, keeping the center at a relatively high level.