[SMM Nickel Midday Review] Nickel prices rose slightly on July 10, with the US Fed's June meeting minutes showing officials' divided views on interest rate cut

SMM Nickel News on July 10:

Macro News:

(1) The minutes of the US Fed's June meeting revealed a divergence of views among officials on interest rate cuts, as they held differing opinions on the impact of tariffs on inflation. They were roughly divided into three factions: those advocating for interest rate cuts within the year but excluding July (the mainstream faction), those advocating for no action throughout the year, and those advocating for immediate action at the next meeting.

(2) US Secretary of Commerce Gina Raimondo stated that she plans to hold talks with China in early August. The US delegation will also include Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer.

Spot Market:

Today, the SMM #1 refined nickel price ranges from 119,400 to 121,800 yuan/mt, with an average price of 120,600 yuan/mt, up 450 yuan/mt from the previous trading day. The mainstream spot premiums quotation range for Jinchuan #1 refined nickel is 1,900-2,200 yuan/mt, with an average premium of 2,050 yuan/mt, up 50 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 2508 contract closed down 0.03% at 119,420 yuan/mt during the night session. During the daytime session, it opened lower and oscillated. As of the midday break, SHFE nickel was quoted at 119,590 yuan/mt, up 0.11%.

With risk-aversion sentiment persisting ahead of the implementation of August tariffs, macro policy dynamics remain the dominant variable. There is a risk of the price center moving downward. In the short term, nickel prices may continue to be in the doldrums, with a price range of 118,000-123,000 yuan/mt.