SMM Nickel Market Update on August 29:
Macro News:
(1) On Thursday local time, US Fed Governor Christopher Waller, one of the leading candidates for the next Fed Chairman, further advocated for lowering short-term borrowing costs in the US, stating he would support an interest rate cut next month and additional cuts over the next three to six months to prevent a collapse in the job market.
(2) The Central Committee of the Communist Party of China and the State Council issued guidelines on promoting high-quality urban development, proposing that by 2035, a modern people-centered city should be basically established.
Spot Market:
Today, the price range for SMM #1 refined nickel stood at 121,100-123,700 yuan/mt, with an average price of 122,400 yuan/mt, up 650 yuan/mt from the previous trading day. The mainstream spot premiums for Jinchuan #1 refined nickel were quoted at 2,200-2,400 yuan/mt, averaging 2,300 yuan/mt, up 50 yuan/mt from the previous session. The spot premiums/discounts for mainstream domestic electrodeposited nickel brands ranged between -100-300 yuan/mt.
Futures Market:
The most-traded SHFE nickel 2510 contract closed at 121,400 yuan/mt in the night session, up 640 yuan/mt (0.53%). It trended lower in the morning session and settled at 120,840 yuan/mt by midday, up 0.07%.
The US tariff policy took effect, imposing a 50% additional duty on Indian auto imports, affecting core nickel-consuming sectors like stainless steel, alongside proposed 1,400%-1,500% tariff hikes on pharmaceuticals, intensifying trade tensions. Trump's pressure on Fed Governor Cook to resign raised concerns over monetary policy independence, with heightened political intervention potentially reinforcing market bets on easing. Nickel prices are expected to maintain a fluctuating trend within 119,000-123,000 yuan/mt.
