[SMM Nickel Midday Review] On June 10, nickel prices fell by over 1,000 yuan, with China's CPI index down 0.2% MoM

SMM Nickel News on June 10:

Macro News:

(1) On June 9, the State Council conducted its 14th thematic study session on "deepening the reform of the mechanism for the commercialization of scientific and technological achievements, and promoting the integrated development of technological innovation and industrial innovation." Premier Li Qiang of the State Council, who presided over the session, emphasized the need to thoroughly study and implement the important instructions of General Secretary Xi Jinping and the relevant decisions and arrangements of the CPC Central Committee. Through coordinated efforts in multiple aspects, efforts should be made to break through the bottlenecks in the commercialization of scientific and technological achievements, effectively improve the efficiency of commercialization, and promote innovative development.

(2) According to data from the National Bureau of Statistics (NBS), in May, the Consumer Price Index (CPI) decreased by 0.2% MoM and 0.1% YoY. The core CPI, excluding food and energy prices, increased by 0.6% YoY, with the growth rate expanding by 0.1 percentage points from the previous month. The Producer Price Index (PPI) for industrial products decreased by 0.4% MoM, the same rate of decline as the previous month, and decreased by 3.3% YoY, with the rate of decline expanding by 0.6 percentage points from the previous month. Prices in some sectors showed marginal improvement.

Spot Market:

Today, the SMM 1# refined nickel price is 121,500-124,100 yuan/mt, with an average price of 122,800 yuan/mt, a decrease of 1,100 yuan/mt from the previous trading day. The quotation range for spot premiums of mainstream Jinchuan #1 refined nickel is 2,300-2,500 yuan/mt, with an average premium of 2,400 yuan/mt, unchanged from the previous trading day. The quotation range for premiums and discounts of mainstream domestic electrodeposited nickel is -50-300 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (NI2507) opened lower in the night session and fluctuated downward, continuing its weak performance in the daytime session. As of 11:30, SHFE nickel closed at 121,600 yuan/mt, a decrease of 1,090 yuan or 0.89% from the previous trading day.

Positive signals have been released from China-US economic and trade consultations, and expectations for US Fed interest rate cuts are diverging. However, the weak demand situation is difficult to improve, and the supply surplus continues to suppress the upside room for nickel prices. In the short term, nickel prices may remain in a sideways movement within the range of 118,000-123,000 yuan/mt.