SMM Nickel Market Morning Comment (Dec 6)

Spot Premiums/Discounts: The mainstream spot premium for Jinchuan #1 nickel was 2,800-3,000 yuan/mt, with an average of 2,900 yuan/mt, unchanged from the previous trading day. The spot premium for Norilsk nickel was -300-0 yuan/mt, with an average of -150 yuan/mt, also unchanged from the previous trading day.

Futures Market: On December 5, nickel prices fell sharply in the morning, with the midday closing price dropping by 1,710 yuan/mt to 125,700 yuan/mt, a decline of 1.34%. The SMM1# refined nickel price fell by 1,450 yuan/mt to 127,575 yuan/mt.

Spot Market: Following the macro-driven surge in SHFE nickel prices, nickel prices saw a significant correction in the morning, quickly falling back to the levels of previous days. Changes in spot premiums for various brands were relatively small. With the continuous increase in domestic electrodeposited nickel, the ongoing accumulation of SHFE and LME inventories, and lower Indonesian ore prices amid the easing of premiums in December, multiple bearish factors intertwined, and the macro benefits were quickly digested in the futures market, leading to a nickel price correction. Domestic spot transactions remained average, with downstream sentiment continuing to be cautious.

Price Spread with Nickel Sulphate: Nickel briquette prices were 125,000-126,750 yuan/mt (in short supply), down 1,450 yuan/mt from the previous trading day. The price spread between nickel sulphate and nickel briquette was approximately 6,332 yuan/mt today.