SMM Nickel Market Morning Comment (Nov 26)

The mainstream spot premium for Jinchuan #1 nickel was 3,100-3,500 yuan/mt, with an average of 3,300 yuan/mt, up 150 yuan/mt compared to the previous trading day. The spot premium for Norilsk nickel was -300-100 yuan/mt, with an average discount of 100 yuan/mt, down 25 yuan/mt compared to the previous trading day.

In the futures market: On November 25, the most-traded SHFE nickel 2412 contract fluctuated. After an initial rise following the morning opening, it fell back again, with the midday closing price rising by 760 yuan/mt to 126,650 yuan/mt, a decrease of 0.6%.

In the spot market: In the morning, the spot premiums for Jinchuan brand nickel plates in east and south China continued last week's high levels. The reason is that, in the short term, the supply of domestic spot refined nickel tightened amid the restocking pace of downstream sectors. Additionally, the direct sales of electrodeposited nickel by enterprises to end-use sectors and the increase in exports of domestically produced electrodeposited nickel have further reduced the supply in the spot market, causing spot premiums to continue rising, although overall demand remained weak. Meanwhile, the recent increase in Norilsk nickel imports has led to more active quotations for various specifications of Norilsk nickel in the market, which may temporarily ease the tightening sentiment in the refined nickel market.

The price of nickel briquette was 126,850-127,150 yuan/mt (out of stock), up 2,100 yuan/mt compared to the previous trading day.