[SMM Nickel Midday Review] Nickel prices fluctuated downward on May 21 as US Fed began considering the possibility of rate hikes

SMM Nickel News, May 21:

Macro and market news:

(1) Ministry of Commerce: China and the US agreed in principle to discuss a framework arrangement for reciprocal tariff reductions on products of equal scale under the Trade Council, covering $30 billion or more on each side.

(2) "Fed mouthpiece" commented on the April meeting minutes: Interest rate cut discussions have nearly concluded, and the US Fed has begun seriously discussing the possibility of rate hikes.

Spot market:

On May 21, SMM #1 refined nickel prices rose 1,550 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,200 yuan/mt, down 250 yuan/mt from the previous trading day; domestic mainstream brand electrodeposited nickel ranged from -600 to 500 yuan/mt.

Futures market:

The most-traded SHFE nickel 2606 contract fluctuated downward during the morning session, closing at 143,730 yuan/mt, down 0.57%.

The most-traded SHFE nickel contract is expected to move sideways within the range of 140,000-150,000 yuan/mt. The downside is supported by bottom cost support from sulfur prices fluctuating at highs; the upside is capped by the dual pressure of continued inventory buildup at both LME and China.