[SMM Nickel Lunchtime Review] Nickel prices were mainly volatile on July 25, with the central bank conducting 400 billion yuan MLF operations today

SMM Nickel News on July 25:

Macro News:

(1) The People's Bank of China (PBOC) issued a tender announcement for the medium-term lending facility (MLF) in July 2025. On July 25, it will conduct an MLF operation of 400 billion yuan through fixed quantity, interest rate tendering, and multiple price winning bids, with a one-year term. This month, 300 billion yuan of MLF is due, which means the PBOC's net MLF injection in July reaches 100 billion yuan, marking the fifth consecutive month of increased operations.

(2) On the afternoon of July 24, Premier Li Qiang of the State Council co-chaired the 25th China-EU Leaders' Meeting with Charles Michel, President of the European Council, and Ursula von der Leyen, President of the European Commission, at the Great Hall of the People in Beijing. Li Qiang stated that, in the face of the current chaotic international situation, China and the EU, as two major forces and markets in the world, should further strengthen multilateral cooperation, jointly uphold multilateralism and free trade, resist unilateralism and protectionism, firmly support the core role of the United Nations in global governance, support the reform and development of the World Trade Organization (WTO), safeguard international fairness, justice, and the global economic and trade order, and jointly promote world peace, stability, and prosperity.

Spot Market:

Today, the SMM #1 refined nickel price is 123,400-125,900 yuan/mt, with an average price of 124,650 yuan/mt, down 50 yuan/mt from the previous trading day. The mainstream spot premiums quotation range for Jinchuan #1 refined nickel is 1,900-2,100 yuan/mt, with an average premium of 2,000 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 -100-300 yuan/mt.

Futures Market:

The most-traded SHFE nickel 2509 contract closed at 123,250 yuan/mt in the night session, down 790 yuan (a 0.64% decline). It jumped initially and then pulled back in the morning session today, and as of the midday session, the SHFE nickel price was 123,650 yuan/mt, down 0.31%.

The MIIT announced that it will soon launch a stable growth work plan for ten key industries, including steel and non-ferrous metals, clarifying the orientation of "adjusting the structure and eliminating outdated capacity." This policy continues to ferment, driving the market's optimistic expectations for supply-side reforms in industrial metals and boosting risk appetite for non-ferrous metals such as nickel. Driven by favorable macro sentiment, nickel prices maintain a fluctuating upward trend on the SHFE nickel market, with an expected price range of 120,000-125,000 yuan/mt.