[SMM Nickel Midday Review] Nickel prices rebounded slightly on September 24, and Foreign Minister Wang Yi met with a delegation of US House representatives.

SMM Nickel September 24:

Macro and Market News:

(1) Fed Chairman Powell: Policy rates remain slightly restrictive, but enable the Fed to better respond to potential economic developments; tariffs are expected to be a one-time pass-through effect; decisions "will never be based on political factors." The "Fed Whisperer" noted that Powell's remarks indicate he believes interest rates are still tight, potentially opening the door for further interest rate cuts.

(2) Foreign Minister Wang Yi met with a delegation of US House representatives: This visit can be called an ice-breaking trip. Head-of-state diplomacy plays an irreplaceable leading role; the current stabilization of China-US relations is hard-won and should be cherished; NPC Chairman Zhao Leji also met with the delegation of US House representatives.

Spot Market:

On September 24, SMM #1 refined nickel prices were 121,100-123,800 yuan/mt, with an average price of 122,450 yuan/mt, up 500 yuan/mt from the previous trading day. The mainstream spot premiums for Jinchuan #1 refined nickel were quoted in the range of 2,300-2,400 yuan/mt, with an average premium of 2,350 yuan/mt, unchanged from the previous trading day. The spot premiums/discounts for mainstream domestic electrodeposited nickel brands were quoted in the range of -100-200 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2511) showed strong performance in the night session, closing at 121,720 yuan/mt, up 0.45%. In the morning session, SHFE nickel prices maintained a fluctuating trend, and as of the midday close, it was reported at 121,630 yuan/mt, up 0.38%.

After macro positive factors were exhausted, the fundamental surplus pattern dominated the market. Although supply disruptions in Indonesia persist, they have not altered the overall loose expectations. Nickel prices are expected to continue fluctuating in the short term, with the most-traded SHFE nickel contract reference range at 120,000-124,000 yuan/mt.