SMM Nickel Update on August 26:
Macro News:
(1) NDRC Chairman Zheng Shajie hosted a business symposium to gather opinions and suggestions on expanding domestic demand, stabilizing employment, and other aspects for the scientific formulation of the "15th Five-Year Plan." At the meeting, company representatives introduced their own production and operation as well as the development of their respective industries, and put forward specific policy recommendations for the "15th Five-Year Plan" period.
(2) US President Trump publicly released a letter to Federal Reserve Governor Lisa Cook on his social media platform "Truth Social," announcing her immediate dismissal. Looking back at US history, there has never been a precedent for a Fed governor being dismissed by a president. If Trump successfully removes Cook, it will set a historical precedent for both the US government and the Federal Reserve.
Spot Market:
Today, the SMM #1 refined nickel price was 119,000-122,900 yuan/mt, with an average price of 121,450 yuan/mt, up 200 yuan/mt from the previous trading day. The mainstream spot premiums for Jinchuan #1 refined nickel were in the range of 2,500-2,700 yuan/mt, with an average premium of 2,600 yuan/mt, down 50 yuan/mt from the previous trading day. The quotation range for domestic mainstream brands of electrodeposited nickel spot premiums and discounts was -100-300 yuan/mt.
Futures Market:
The most-traded SHFE nickel 2510 contract continued its fluctuate upward trend, closing at 120,330 yuan/mt (up 0.05%) during the night session. In the morning session today, it further climbed, reaching 120,420 yuan/mt by 11:30, with an intraday gain of about 0.12%.
Fed Chairman Powell unexpectedly delivered dovish signals at the Jackson Hole Economic Symposium, causing market bets on a September interest rate cut to surge from 75% to 90%, with expectations for two rate cuts within the year. The US dollar index fell in response, and nickel prices rebounded. However, high inventory levels still suppress the momentum of nickel price rebounds, and it is expected that the market will remain in the doldrums, with a price range of 119,000-123,000 yuan/mt.
