[SMM Nickel Midday Review] On April 30, refined nickel prices fell, with macro disturbances still dominating market sentiment

SMM Nickel News on April 30:

Macro News:

(1) The Caixin China General Manufacturing Purchasing Managers' Index (PMI) for April, released on April 30, stood at 50.4, down 0.8 percentage points from March and the lowest in the past three months, indicating a slowdown in manufacturing expansion.

(2) Zou Lan, Deputy Governor of the People's Bank of China, stated at a press conference held by the State Council Information Office on April 28 that the bank would implement RRR cuts and interest rate cuts in a timely manner based on domestic and overseas economic conditions and the performance of financial markets, to maintain ample liquidity. It would leverage the dual functions of the monetary policy toolkit in terms of both volume and structure, create new structural monetary policy tools, and make targeted efforts in key areas such as stabilizing employment and growth to provide financial support. The bank is also exploring ways to enrich its policy toolkit and will introduce incremental policies in a timely manner to help stabilize employment, enterprises, the market, and expectations.

Spot Market:

Today, the SMM 1# refined nickel price ranges from 123,850 to 126,500 yuan/mt, with an average price of 125,175 yuan/mt, down 425 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan No. 1 nickel is 2,100-2,400 yuan/mt, with an average premium of 2,250 yuan/mt, up 150 yuan/mt from the previous trading day. The premiums and discounts quotation range for Russian nickel is 0-300 yuan/mt, with an average premium of 150 yuan/mt, unchanged from the previous trading day.

Futures Market:

The most-traded SHFE nickel contract (NI2506) fluctuated considerably during the day, closing at 123,750 yuan/mt as of 11:30, down approximately 0.6% from the settlement price of the previous trading day. Currently, there is strong resistance near 126,000 yuan/mt for nickel prices.

Recently, nickel prices have fluctuated downward within the price range of 123,000-126,000 yuan/mt, supported from below by the implementation of Indonesian policies and the upward trend in nickel ore prices, while constrained from above by surplus pressure and high inventory. Macro disturbances still dominate market sentiment, limiting the room for price rebounds.