[SMM Nickel Midday Review] Nickel prices fell on August 11, with the Bank of Japan governor hinting at a rate hike in September.

SMM Nickel August 11 News:

Macro and Market News:

(1) Japanese media: BOJ governor hints at September rate hike, prompting joint US-Japan yen buying.

(2) Cleveland Fed President Beth Hammack said the Fed may need multiple rate hikes to bring inflation down to its 2% target.

Spot Market:

On August 11, the average price of SMM #1 refined nickel was 130,450 yuan/mt, up 550 yuan/mt from the previous trading day. For spot premiums, the average for Jinchuan #1 refined nickel was 1,300 yuan/mt, flat from the previous day, while domestic mainstream electrodeposited nickel ranged from -200 to 400 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2609) traded lower in the morning session, closing the morning at 129,000 yuan/mt, down 0.59%.

Nickel prices are currently in a highly uncertain state with policy expectations swinging wildly, macro headwinds and geopolitical risks intertwined. In the short term, prices are expected to swing wildly in the range of 125,000-133,000 yuan/mt for the most-traded SHFE nickel contract.