SMM Nickel Market Morning Comment (Dec 19)

Spot Premiums/Discounts: The mainstream spot premium for Jinchuan #1 nickel was 4,100-4,300 yuan/mt, with an average of 4,200 yuan/mt, up 450 yuan/mt compared to the previous trading day. The spot premium for Norilsk nickel was -200-0 yuan/mt, with an average of -100 yuan/mt, up 50 yuan/mt compared to the previous trading day. The morning average price of SMM 1# refined nickel fell by 1,225 yuan/mt to 126,225 yuan/mt.

Futures Market: On December 18, nickel prices fluctuated downward in the morning, with the midday closing price dropping by 2,000 yuan/mt to 123,760 yuan/mt, a decline of 1.59%.

Spot Market: The fundamentals remained bearish with no structural changes. Although the drop in futures prices slightly boosted downstream purchase willingness, the overall demand in December continued to be relatively sluggish.

Spot Premiums/Discounts: The premium for Jinchuan branded nickel surpassed 4,000 yuan/mt, reaching an annual high. However, a certain amount of Jinchuan-branded exported nickel plates has recently been re-imported into the domestic market. This may alleviate the short-term supply tightness of Jinchuan nickel, and it is expected that the spot nickel plate premiums may pull back in the future.

Price Spread with Nickel Sulphate: Nickel briquette prices were 123,450-124,000 yuan/mt, down 1,475 yuan/mt compared to the previous trading day.