Futures Market Fluctuates and Declines, Market Transactions Sluggish [SMM Nickel Spot Midday Review]

SMM January 22 News:
Spot premiums/discounts: Today, the mainstream spot premiums for Jinchuan No.1 nickel were quoted in the range of 1,800-2,000 yuan/mt, with an average premium of 1,900 yuan/mt, up by 100 yuan compared to yesterday. Russian nickel premiums/discounts were quoted in the range of -300 to 100 yuan/mt, with an average premium/discount of -100 yuan/mt, up by 50 yuan compared to yesterday.

Futures market: In the morning, nickel prices fell by 710 yuan to 127,260 yuan, a decrease of 0.55%.

Today, the futures market fluctuated downward, but prices remained at high levels. Regarding market transactions, most downstream enterprises have already gone on holiday this week, resulting in scarce market transactions and weak purchase willingness from downstream buyers. Therefore, under sluggish market transactions, Jinchuan nickel premiums, which accelerated their decline last week, showed slight fluctuations this week. Supply side, producers maintained a high operating rate, ensuring ample supply. With a supply surplus, Jinchuan nickel premiums/discounts are expected to decline further in the short term.

Regarding the price spread with nickel sulphate: Today, nickel briquette prices were 126,700-127,000 yuan/mt, down by 1,025 yuan/mt compared to the previous trading day's spot price. Nickel sulphate remains at a discount to refined nickel.