[SMM Nickel Midday Review] Nickel Prices Remain in the Doldrums on September 11 as US August PPI Unexpectedly Pulls Back

SMM Nickel September 11 News:

Macro News:

(1) Zheng Shanjie, Director of the National Development and Reform Commission (NDRC), reported to the Standing Committee of the National People's Congress on the implementation of the national economic and social development plan since the beginning of the year on the 10th. Zheng Shanjie stated that efforts will be made to balance high-quality development and high-level security, maintain policy continuity and stability, enhance flexibility and foresight, focus on stabilizing employment, enterprises, markets, and expectations, effectively promote domestic and international dual circulation, coordinate efforts to drive a reasonable rebound in price levels, maintain overall stability in social employment and economic growth, stabilize the economic foundation, and strive to complete the annual economic and social development targets and tasks.

(2) The US Department of Labor announced today that the Producer Price Index (PPI) for August unexpectedly fell by 0.1% MoM, marking the first month-on-month decline since April, due to pullbacks in energy and trade services.

Spot Market:

On September 11, the price of SMM #1 refined nickel was 120,200-122,700 yuan/mt, with an average price of 121,550 yuan/mt, down 100 yuan/mt from the previous trading day. The mainstream spot premiums for Jinchuan #1 refined nickel were quoted in the range of 2,200-2,300 yuan/mt, with an average premium of 2,250 yuan/mt, up 50 yuan/mt from the previous trading day. The spot premiums/discounts for mainstream domestic brands of electrodeposited nickel were quoted in the range of -200-200 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2510) closed at 120,830 yuan/mt in the night session, up 340 yuan/mt (a gain of 0.28%). Prices continued to pull back during the morning session on the 11th, and as of the midday close, the contract was quoted at 120,290 yuan/mt, down 0.17%.

The US August PPI unexpectedly slowed to a 2.6% YoY increase, while the core PPI fell 0.1% MoM, strengthening market expectations for a US Fed interest rate cut in September. LME nickel inventory continued to accumulate, with LME nickel inventory remaining high at 221,094 mt on September 10, up 3,024 mt from the previous day. High inventory has become the most direct factor suppressing nickel prices. The short-term SHFE nickel price is expected to reference a range of 120,000-124,000 yuan/mt.