SMM Nickel Market Morning Comment (Nov 27)

Spot premiums/discounts: The mainstream spot premium for Jinchuan #1 nickel was 3,100-3,500 yuan/mt, with an average of 3,300 yuan/mt, remaining flat compared to the previous trading day. The spot discount for Norilsk nickel was 200-0 yuan/mt, with an average of 100 yuan/mt, also remaining flat compared to the previous trading day.

Futures market: On November 26, following a 1.29% increase during the night session to 128,710 yuan/mt, the most-traded SHFE nickel contract opened lower and experienced wide fluctuations, closing at 128,460 yuan/mt, up 1,390 yuan/mt, an increase of 1.09%. Open interest shifted and overall decreased.

Spot market: In the morning, the premium for Jinchuan brand nickel plates in east and south China continued to maintain the high level from the previous working day. The restocking pace of downstream buyers and the increase in exports of domestic electrodeposited nickel have led to a continued tightening of spot supply. Currently, apart from the Jinchuan brand, other brands of nickel plates are relatively abundant in the market. The future logic of nickel prices still needs to pay attention to the overall impact of domestic policies on base metals and changes in Indonesian policies.

Price spread: The price of nickel briquette was 127,100-127,500 yuan/mt (in short supply), up 300 yuan/mt from the previous trading day. The price spread between nickel sulphate and nickel briquette was approximately 7,527 yuan/mt (nickel sulphate prices were 7,527 yuan/mt lower than nickel briquette prices).