[SMM Nickel Midday Review] Nickel prices continued to rebound on July 4, as the US "Big and Beautiful" bill was passed by the House of Representatives

SMM Nickel News on July 4:

Macro News:

(1) On July 3 local time, Wang Yi, member of the Political Bureau of the CPC Central Committee and Minister of Foreign Affairs, met with reporters together with German Foreign Minister Annalena Baerbock in Berlin and answered questions on the spot. In response to a reporter's question about European companies' concerns over China's export controls on rare earths, Wang Yi stated that imposing necessary controls on dual-use items is an exercise of sovereignty by countries and also an international obligation they should fulfill. China's policy is in line with international practices and conducive to maintaining world peace and stability. Rare earth exports have never been, nor should they be, an issue between China and Europe. As long as European companies comply with export control regulations and fulfill necessary procedures, their normal needs will be met. China's competent authorities have also established a "fast track" for European companies. Those who deliberately hype up this issue between China and Europe have ulterior motives.

(2) The US "CHIPS and Science Act" passed the House of Representatives after two Republican lawmakers switched their votes, and Trump is expected to sign the bill early Saturday morning.

Spot Market:

Today, the SMM 1# refined nickel price ranges from 122,100 to 124,800 yuan/mt, with an average price of 123,450 yuan/mt, up 900 yuan/mt from the previous trading day. The mainstream spot premiums quotation range for Jinchuan #1 refined nickel is 2,000-2,200 yuan/mt, with an average premium of 2,100 yuan/mt, down 200 yuan/mt from the previous trading day. The spot premiums and discounts quotation range for electrodeposited nickel from mainstream domestic brands is -100 to 300 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2508) broke through a key resistance level during the night session, surging past the 123,000 yuan/mt mark, but pulled back after the rally. During the daytime session, it maintained a fluctuating trend. As of the midday break, SHFE nickel was quoted at 122,390 yuan/mt, up 0.74%.

Driven by the macro sentiment of "anti-cut-throat competition," nickel prices have rebounded recently. However, with downstream demand currently in the off-season, the long-term surplus pattern of nickel is difficult to reverse, and nickel prices will still face pressure in the future.