SMM Nickel Market Morning Comment (Nov 28)

Spot premiums/discounts: The mainstream spot premiums for Jinchuan #nickel were quoted at 3,000-3,500 yuan/mt, with mainstream market transaction premiums concentrated at 3,000-3,200 yuan/mt. The average premium was 3,100 yuan/mt, down 200 yuan compared to the previous trading day. The spot discounts for Norilsk nickel were 200-0 yuan/mt, with an average of 100 yuan/mt, unchanged from the previous trading day.

Futures market: On November 27, SHFE nickel maintained a fluctuating trend in the morning session, initially continuing the decline from the night session before rebounding. The midday closing price fell by 2,020 yuan/mt to 126,250 yuan/mt, a decrease of 1.09%.

Spot market: In the morning, the spot premiums for Jinchuan brand nickel plates in East and South China narrowed slightly, but the change was relatively small. Currently, the spot premiums for Jinchuan brand nickel plates remain high. Some downstream enterprises have switched to imported Nikkelverk nickel or Sumitomo nickel for economic reasons. To reduce the inventory risk of Jinchuan nickel plates, traders have become less firm on their quotes. In the electrodeposited nickel market, the supply tightening has led to relatively low discounts in the short term. However, the poor demand has not changed, resulting in minimal overall price fluctuations and continued sluggish market transactions.

Price spread: Nickel briquette prices were 124,750-125,550 yuan/mt (out of stock), down 2,150 yuan/mt from the previous trading day. The price spread between nickel sulphate and nickel briquette was approximately 5,286 yuan/mt (nickel sulphate prices were 5,286 yuan/mt lower than nickel briquette prices).