Nickel prices trended lower unilaterally this week, as the most-traded SHFE nickel contract broke through key support levels successively, while LME nickel prices also weakened. The core driver for the price decline was the intensification of the supply-demand imbalance in nickel, with inventory climbing to a near five-year high, while reduced expectations for interest rate cuts from a macro perspective further dampened market sentiment. The most-traded SHFE nickel contract broke the consolidation range that had persisted for nearly four months, falling all the way from 121,000 yuan/mt to close at 114,050 yuan/mt on Friday, breaking below the June low, with a weekly decline of 3.21%. LME nickel prices also performed weakly, dropping from $14,870/mt to below $14,400/mt, with the latest 3M nickel closing at $14,380/mt, down 3.36% WoW. In the spot market, the average price of SMM #1 refined nickel this week was 116,630 yuan/mt, down 2,900 yuan/mt WoW. The average premium for Jinchuan nickel this week was 4,000 yuan/mt, up 300 yuan/mt WoW, while the premiums and discounts for mainstream domestic brands of electrodeposited nickel ranged from 0-500 yuan/mt. This week, affected by refined nickel smelters switching production to nickel sulphate, the volume of nickel plate available for external sales decreased, leading to a decline in spot circulation volume and a strengthening of premiums.

Indonesia Nickel Ore Benchmark Price Declines, NPI Price Keeps Decreasing

The average price of SMM 10-12% high-grade NPI fell 12.8 yuan/mtu WoW to 896.8 yuan/mtu (ex-factory, tax included). The average Indonesian NPI FOB index price dropped $1.49/mtu WoW to $110.88/mtu. End-use consumption remained sluggish during the traditional off-season. High-grade NPI prices hit a record low during the week, while several mainstream steel mills issued tender prices and concluded deals for tens of thousands of metric tons, driving prices even lower.

This week, nickel prices for MHP and high-grade nickel matte declined, while cobalt prices for MHP rose.

[SMM Daily Review: Tender Prices from Mainstream Steel Mills Released, High-Grade NPI Prices Fall in Response] November 21 (SMM) - The average price of 10-12% high-grade NPI was 890.5 yuan/mtu (ex-factory, tax included), down 4 yuan/mtu MoM from the previous working day.

In October 2025, China's refined nickel imports totaled 9,741 mt, down 66% MoM and 6% YoY. China's refined nickel exports reached 13,667 mt, down 3% MoM but up 55% YoY.

According to the latest data from China Customs, China's total nickel sulphate imports in October 2025 amounted to 4,852 mt in metal content, down 25% MoM but up 114% YoY. Exports of nickel sulphate stood at 233 mt in metal content, increasing 31% MoM but decreasing 53% YoY. Consequently, China's net imports of nickel sulphate in October 2025 were 4,619 mt in metal content, declining 27% MoM while rising 161% YoY.

In October 2025, imports of SMM hydrometallurgy intermediate products reached 151,254 mt in physical content, down 21% MoM.