SMM Nickel Market Morning Comment (Dec 5)

Spot Premiums/Discounts: The mainstream premium for Jinchuan #1 nickel was 2,900-3,100 yuan/mt, with an average of 2,900 yuan/mt, down 100 yuan/mt compared to the previous trading day. The Norilsk nickel premium was -300-0 yuan/mt, with an average of -150 yuan/mt, up 50 yuan/mt compared to the previous trading day.

Futures Market: On December 4, SHFE nickel opened high and remained stable at high levels in the morning session. The midday closing price rose by 2,690 yuan/mt to 127,370 yuan/mt, an increase of 2.16%. SMM #1 refined nickel prices increased by 3,300 yuan to 129,025 yuan/mt.

Spot Market: During the day, nickel prices rose, and the market prices remained stable at high levels. The spot premiums for Jinchuan brand nickel slightly decreased in the morning but overall remained largely unchanged. Midday Jinchuan ex-factory prices increased by 3,600 yuan/mt to 130,800 yuan/mt. The premiums/discounts for Norilsk nickel and domestic electrodeposited nickel plates showed little overall change. The rise in futures prices and the overall stability of premiums/discounts intensified downstream wait-and-see sentiment, leading to a noticeable weakening in transactions for the day.

Nickel briquette prices were 127,200-127,450 yuan/mt (out of stock), up 3,300 yuan/mt compared to the previous trading day.