Nickel Price Fluctuations: Surged in Early Trading, Then Declined Amid Volatility [SMM Nickel Spot Midday Review]

SMM February 19 News:

Spot Premiums/Discounts: The mainstream spot premiums for Jinchuan No.1 nickel were quoted in the range of 2,000-2,100 yuan/mt, with an average premium of 2,050 yuan/mt, down by 50 yuan compared to the previous trading day. The spot premiums/discounts for Russian nickel were quoted in the range of -100 to 100 yuan/mt, remaining on par with the past two trading days.

Futures: Nickel prices briefly surged today but then fluctuated lower, declining by 0.22% to a low of 123,650 yuan/mt.

Spot Premiums/Discounts: The spot premiums for Jinchuan-branded nickel fell by 50 yuan compared to yesterday, mainly due to the overall low market trading activity and insufficient release of downstream end-use demand.

From a technical perspective, the SHFE nickel 2503 contract showed a low opening and downward trend during the morning session, maintaining a rangebound fluctuating trend overall. The current price has pulled back to the bottom of the fluctuation range since November, but there is some technical support below, with market sentiment leaning towards caution. Although macro policy expectations provide some support to the market, nickel prices remain constrained by fundamentals, particularly the increase in LME nickel inventory and the seasonal weakness on the demand side.

Price Spread with Nickel Sulphate: Today, nickel briquette prices were quoted at 123,350-123,700 yuan/mt, with an average price of 123,525 yuan/mt, up by 250 yuan/mt compared to the previous trading day's spot price. Nickel sulphate remains at a discount to refined nickel.