[SMM Nickel Midday Review] Nickel Prices Approach 120,000 Yuan Again on October 14 Amid Ongoing U.S.-China Trade Tensions

SMM Nickel October 14 News:

Macro and Market News:

(1) Federal Reserve Bank of Philadelphia President Ana Paulson said on Monday local time that she favored two more interest rate cuts this year, each by 25 basis points, as monetary policy should ignore the short-term effects of tariffs when assessing price increases.

(2) The Ministry of Transport issued the "Measures for Collecting Special Port Dues on U.S. Vessels". The Measures, comprising ten articles and effective today, mainly cover the basis for formulation, scope of collection, collection standards, collecting entities, voyage counts subject to fees, payment requirements, information verification, handling of violations, dynamic adjustments, interpreting authority, and effective date. They further clarify specific provisions for exemptions, including vessels built in China, empty vessels entering Chinese shipyards solely for repair, and other vessels recognized as exempt.

Spot Market:

On October 14, the SMM #1 refined nickel price was 120,700-123,500 yuan/mt, with an average price of 122,100 yuan/mt, down 350 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 2,300-2,500 yuan/mt, with an average premium of 2,400 yuan/mt, unchanged from the previous trading day. The spot premium/discount quotation range for mainstream domestic brands of electrodeposited nickel was -100-100 yuan/mt, showing a decrease.

Futures Market:

The most-traded SHFE nickel contract (2511) opened at 121,240 yuan/mt on October 14. The price continued to decline during the session, approaching the key level of 120,000 yuan. As of the midday close, it was quoted at 120,850 yuan/mt, a decrease of 0.66%.

Concerns over China-U.S. trade friction continued to ferment, becoming a key variable affecting overall base metal sentiment. Although Trump recently softened his stance, uncertainties persist. Against the backdrop of weak fundamentals and a volatile external environment, nickel prices are expected to remain in the doldrums in the short term, with the reference range for the most-traded SHFE nickel contract at 120,000-124,000 yuan/mt.