SMM Nickel Market Morning Comment (Dec 2)

Last week, refined nickel prices remained stable at 124,000-131,000 yuan/mt. The fundamentals showed no structural changes compared to the previous week. From various segments of the nickel industry chain: In the nickel ore sector, the premium for Indonesian domestic trade laterite nickel ore decreased, weakening support for nickel prices; in the nickel sulphate sector, nickel salt prices remained stable with a slight upward trend, and sentiment to stand firm on quotes increased among salt producers; in the NPI sector, prices were under pressure due to supply-demand imbalance; regarding refined nickel itself, the domestic electrodeposited nickel continued its trend of increasing supply, and downstream alloy electroplating enterprises showed a slight recovery in month-end inventory sentiment, mainly reflected in just-in-time procurement. However, high inventory levels both domestically and internationally exerted significant pressure on nickel prices. Overall, refined nickel prices are expected to maintain sideways movement, with a bearish fundamental outlook limiting upward momentum. The expected trading range for nickel prices next week is 124,000-129,000 yuan/mt.