[SMM Nickel Midday Review] Nickel Prices Fell on September 17 as Cautious Sentiment Spread Among Investors Ahead of US Fed Decision

SMM Nickel September 17:

Macro and Market News:

(1) Tariffs—British media: EU and Indonesia reached a trade agreement. ② The US Department of Commerce is considering imposing additional tariffs on more imported auto parts. ③ The US and India stated that trade negotiators held positive talks in New Delhi on Tuesday, and the two countries agreed to step up efforts to reach a trade agreement.

(2) Spot gold prices recently broke through the $3,700/oz barrier, hitting a new record high. Many investors are currently betting on a potential interest rate cut by the US Fed this week and are assessing the possibility of further monetary policy easing in the coming months.

Spot Market:

On September 17, SMM #1 refined nickel prices were 121,400-124,200 yuan/mt, with an average price of 122,800 yuan/mt, down 800 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 2,100-2,300 yuan/mt, with an average premium of 2,200 yuan/mt, unchanged from the previous trading day. The spot premium/discount quotation range for mainstream domestic brands of electrodeposited nickel was -100-200 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2510) fluctuated during the night session and closed slightly lower at the tail end, closing at 122,430 yuan/mt, down 360 yuan/mt (a decline of 0.29%). It opened lower and moved lower in the morning session, pulling back to around 121,000 yuan/mt, and as of the midday close, it was reported at 121,490 yuan/mt, down 1.06%.

On the last trading day before the US Fed decision, cautious sentiment spread, and the overall volatility of the nonferrous metals sector narrowed, with nickel prices under pressure. LME nickel inventory continued to climb, reported at 226,434 mt on September 16, an increase of 1,950 mt from the previous day, repeatedly hitting record highs. Nickel prices are expected to remain volatile in the short term, with the most-traded SHFE nickel contract reference range at 120,000-124,000 yuan/mt.