[SMM Nickel Midday Review] On August 27, nickel prices strongly rebounded, with an intraday increase of nearly 2%

SMM Nickel News on August 27:

Macro News:

(1) The State Council Information Office held a press conference at 10 a.m. on the 27th. The Ministry of Commerce stated that it would soon introduce, in collaboration with relevant departments, a series of policy measures to promote service exports, further enhancing support in areas such as finance, taxation, and financial facilitation, and continuously optimizing the policy environment.

(2) Trump expressed his hope to visit China as soon as possible. In response, Foreign Ministry spokesperson Guo Jiakun stated that head-of-state diplomacy plays an irreplaceable strategic leading role in China-U.S. relations. The heads of state of China and the United States maintain close interactions and communication.

Spot Market:

Today, the SMM #1 refined nickel price ranges from 121,700 to 124,600 yuan/mt, with an average price of 123,150 yuan/mt, up 1,700 yuan/mt from the previous trading day. The mainstream spot premiums quotation range for Jinchuan #1 refined nickel is 2,400-2,600 yuan/mt, with an average premium of 2,500 yuan/mt, down 100 yuan/mt from the previous trading day. The spot premiums and discounts quotation range for mainstream domestic brand electrodeposited nickel is -100-300 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2510) staged a strong rebound, closing at 121,690 yuan/mt during the night session, up 1.11% (an increase of 1,340 yuan). Today's morning session opened higher and continued to rise, reaching a high of 122,690 yuan/mt during the session, with intraday gains expanding to 1.85%.

Fed Chairman Powell unexpectedly sent dovish signals at the Jackson Hole central bankers' symposium, causing market bets on the probability of a September interest rate cut to surge from 75% to 90%, with expectations for two rate cuts this year rising. The US dollar index dropped in response, boosting nickel prices. However, high inventory levels continue to suppress the rebound momentum of nickel prices. It is expected that the market will maintain a fluctuating trend in the future, with a price range of 119,000-123,000 yuan/mt.