SMM Nickel Market Morning Comment (Dec 4)

Spot Premiums/Discounts: The mainstream premium for Jinchuan #1 nickel was 2,900-3,100 yuan/mt, with an average of 3,000 yuan/mt, up 100 yuan compared to the previous trading day. The premium for Norilsk nickel was -400-0 yuan/mt, with an average of -200 yuan/mt, unchanged from the previous trading day.

Futures Market: On December 3, SHFE nickel opened lower and fluctuated at low levels in the morning. The midday closing price fell by 1,070 yuan/mt to 124,660 yuan/mt, a decrease of 0.85%.

Spot Market: During the day, nickel prices were adjusted downward again, continuing to fluctuate at low levels. The premiums/discounts for Jinchuan brand nickel, domestic electrodeposited nickel, and Norilsk nickel slightly increased overall but did not change significantly. The premium for imported Nikkelverk and Sumitomo nickel slightly rose, and the economic advantage (compared to Jinchuan nickel) seen in the past two weeks weakened, with overall transactions slightly declining. Futures prices fell this week, but considering the traditional off-season for downstream sales at year-end and the destocking phenomenon of downstream enterprises before the year-end, downstream procurement did not show significant improvement.

Nickel briquette prices were 123,850-124,200 yuan/mt (out of stock), down 675 yuan/mt from the previous trading day.