SMM Nickel Market Update on October 17:
Macro and Market News:
(1) The Ministry of Commerce held a regular press conference yesterday, where officials introduced recent key work. A reporter asked whether China and the US will hold a new round of economic and trade talks in the near future. Spokesperson He Yongqian stated that China has always been open to equal consultations based on mutual respect. In addition, He Yongqian responded to China's recent export control measures on rare earths, saying that the US interpretation severely distorts, exaggerates, and misrepresents China's measures, deliberately causing unnecessary misunderstandings and panic.
(2) On October 16 local time, Russian President Vladimir Putin and US President Donald Trump held a phone conversation for the first time in nearly two months. Russian Presidential Aide Yuri Ushakov stated that the call was initiated by Russia and lasted 2.5 hours. Trump said he might meet with Putin in Budapest, Hungary within the next two weeks.
Spot Market:
On October 17, the price of SMM #1 refined nickel was 121,000-123,700 yuan/mt, with an average price of 122,350 yuan/mt, up 200 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, down 50 yuan/mt from the previous trading day. The spot premiums and discounts quotation range for mainstream domestic electrodeposited nickel brands was -100-200 yuan/mt.
Futures Market:
The most-traded SHFE nickel contract (2511) fluctuated rangebound at high levels during the night session, closing slightly higher at the end. It opened at 121,500 yuan/mt on the 17th, dropped back slightly during the session, and as of the midday close, was quoted at 129,910 yuan/mt, down 0.01%.
Subtle changes have emerged in China-US trade relations, with China expressing openness to equal consultations based on mutual respect, though trade policy uncertainties remain. The US Fed's policy moves are a key market focus; while interest rate cut expectations exist, the specific timing and magnitude remain uncertain. Given weak fundamentals and a volatile external environment, nickel prices are expected to remain in the doldrums in the short term, with the most-traded SHFE nickel contract reference range at 120,000-124,000 yuan/mt.
