[SMM Nickel Midday Review] Nickel prices rose sharply on June 26 as the central bank and other departments introduced stimulus measures to boost market confidence

SMM Nickel News on June 26:

Macro News:

(1) On June 26, the National Development and Reform Commission (NDRC) held a press conference at 10 a.m. At the conference, Li Chao, Deputy Director of the Policy Research Office of the NDRC, stated that the third batch of funds for the trade-in policy for consumer goods would be allocated in July this year. Meanwhile, the NDRC will coordinate with relevant parties, adhering to the principles of greater sustainability and balance, to formulate monthly and weekly plans for the use of national subsidy funds across different sectors, ensuring the orderly implementation of the trade-in policy for consumer goods throughout the year.

(2) On the morning of June 25, Premier Li Qiang of the State Council attended and delivered a speech at the opening ceremony of the 2025 Summer Davos Forum in Tianjin. Li Qiang stated that China will continue to actively integrate into the global market, contributing what the Chinese economy can offer to what the world economy needs. Over the years, the Chinese economy has been a crucial engine for global economic growth, not only due to its stability and high growth potential but also because of its openness and interconnectedness with the world economy. The sustained and steady growth of the Chinese economy will provide strong support for the accelerated recovery of the world economy. The continuous expansion and upgrading of the Chinese market will create incremental space for international trade and commerce to reverse its downturn. The continuous breakthroughs and advancements in Chinese innovation will inject new vitality into global development to overcome the lack of momentum.

Spot Market:

Today, the SMM 1# refined nickel price is 120,000-123,300 yuan/mt, with an average price of 121,650 yuan/mt, up 2,100 yuan/mt from the previous trading day. The mainstream spot premiums quotation range for Jinchuan #1 refined nickel is 2,800-3,000 yuan/mt, with an average premium of 2,900 yuan/mt, down 100 yuan/mt from the previous trading day. The spot premiums and discounts quotation range for electrodeposited nickel from mainstream domestic brands is 0-400 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2507) strengthened during both the night and daytime sessions: it closed up 1.19% at 119,490 yuan/mt in the night session, while LME nickel rose 1.14% to $15,075/mt. The daytime session continued the upward trend, with prices returning to the 120,000 yuan/mt level during trading. As of the midday close, SHFE nickel was quoted at 120,400 yuan/mt, up 2,460 yuan/mt or 2.09%.

With the easing of geopolitical risks and the dissipation of risk-averse sentiment, the joint launch of consumption stimulus measures by six departments, including the central bank, has boosted market confidence, leading to a recent rebound in nickel prices. In the medium and long-term, the surplus pattern of nickel is difficult to reverse, and the rebound space is expected to be limited.