[SMM Nickel Midday Review] Nickel prices rose slightly on September 19, as the MIIT stated it would strengthen technological leadership in areas such as solid-state batteries.

SMM Nickel September 19:

Macro and Market News:

(1) On September 19, to implement the work arrangements of the Central Economic Work Conference and the Government Work Report on "maintaining stable economic growth" and "expanding domestic demand in all aspects," the Ministry of Industry and Information Technology (MIIT), together with the Ministry of Commerce and the State Administration for Market Regulation, jointly issued the "Light Industry Steady Growth Work Plan (2025-2026)" (hereinafter referred to as the "Work Plan") to promote the light industry to play a greater role in maintaining stable economic growth.

(2) MIIT: It will strengthen the innovation leadership of lithium battery technology, accelerate the layout of forward-looking technologies, speed up the R&D and industrialisation of solid-state batteries, sodium-ion batteries, all-climate batteries, fast-charging batteries and key materials, break through active safety warning technology based on thermal runaway models, develop high-performance flame-retardant battery materials and efficient green fire-extinguishing materials, and build a multi-dimensional safety technology system.

Spot Market:

On September 19, the SMM #1 refined nickel price was 121,400-124,000 yuan/mt, with an average price of 122,750 yuan/mt, up 50 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 2,300-2,400 yuan/mt, with an average premium of 2,350 yuan/mt, up 150 yuan/mt from the previous trading day. The spot premiums and discounts quotation range for domestic mainstream brands of electrodeposited nickel was -100-200 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2510) continued to decline during the night session and closed at 120,800 yuan/mt, down 770 yuan/mt (a decrease of 0.63%). In today's morning session, SHFE nickel surged straight up and then fluctuated around the 121,000 yuan level. As of the midday close, it reported 121,580 yuan/mt, up 0.01%.

The US Fed cut interest rates by 25 basis points as expected, lowering the federal funds rate to the 4.00%-4.25% range. The rate cut was in line with market expectations, and macro tailwinds materialised, with the non-ferrous metals sector generally declining. The surplus situation in the nickel market has not improved, and LME nickel inventory continued to climb, increasing by 2,034 mt to 228,468 mt on September 17, with significant growth in Asian warehouse inventories. 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.