Futures Prices Plunged Sharply, Spot Market Trading Relatively Sluggish [SMM Nickel Spot Midday Review]

SMM January 23 News:
Spot premiums/discounts: Today, the mainstream spot premiums for Jinchuan No.1 nickel were quoted in the range of 1,900-2,100 yuan/mt, with an average premium of 2,000 yuan/mt, up by 100 yuan compared to yesterday. Russian nickel premiums/discounts were quoted in the range of -300 to 0 yuan/mt, with an average premium/discount of -150 yuan/mt, down by 50 yuan compared to yesterday.

Futures: In the morning, nickel prices fell by 3,450 yuan to 124,200 yuan, a decline of 2.7%.

Today, futures prices dropped significantly, with the most-traded contract closing at 124,200 yuan in the morning. On one hand, the approved nickel ore mining work plan and budget (RKAB) for 2025 totals 298.49 million mt. Against the backdrop of a supply surplus, the previously high nickel prices and the sharp increase in overseas nickel futures inventory, which exceeded 170,000 mt, triggered a significant decline in nickel prices. As the Chinese New Year approaches, upstream and downstream enterprises have entered shutdown and holiday modes, and stockpiling of ferronickel and nickel salts has been largely completed. The spot market trading was relatively quiet, and overall market demand has slowed. Under the supply surplus, Jinchuan brand premiums/discounts are expected to decline further in the short term.

Regarding the price spread with nickel sulphate: Today, nickel briquette prices were in the range of 123,750-124,450 yuan/mt, down by 2,750 yuan/mt compared to the previous trading day's spot prices. Nickel sulphate remains at a discount to refined nickel.