[SMM Nickel Daily Review] Nickel prices fluctuated slightly on October 23, as Trump stated that China and the U.S. would reach a trade agreement at the APEC summit.

SMM Nickel October 23 News:

Macro and Market News:

(1) US President Trump stated that he expects China and the US to reach an agreement on trade issues at the upcoming APEC summit next week, but he mentioned that the heads of state of China and the US may not meet. Foreign Ministry Spokesperson Guo Jiakun said at yesterday's regular press conference that head-of-state diplomacy plays an irreplaceable strategic leading role in China-US relations, and the heads of state of China and the US maintain close exchanges and communication.

(2) The European side stated that it will hold talks with China to discuss export controls on rare earths. In response, Foreign Ministry Spokesperson Guo Jiakun said at yesterday's regular press conference that the essence of China-EU economic and trade relations is complementary advantages and mutual benefit. It is hoped that the EU will abide by its commitment to supporting free trade and opposing trade protectionism, provide a fair, transparent, and non-discriminatory business environment for companies from all countries, safeguard the market economy and WTO rules with concrete actions, and insist on properly resolving trade differences through dialogue and consultation.

Spot Market:

On October 23, the SMM #1 refined nickel price was 120,800-123,500 yuan/mt, with an average price of 122,150 yuan/mt, up 50 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 2,500-2,600 yuan/mt, with an average premium of 2,550 yuan/mt, up 50 yuan/mt from the previous trading day. The spot premiums and discounts quotation range for mainstream domestic brands of electrodeposited nickel was -100-200 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2512) fluctuated rangebound during the night session, closing slightly higher at the end of the session. In the morning session on the 23rd, it showed a consolidation pattern, closing at 121,380 yuan/mt as of the market close, up 0.19%.

Subtle changes have emerged in China-US trade relations. Trump said China and the US will reach a trade agreement at the APEC summit, but the heads of state may not meet, keeping concerns about trade friction alive. The latest LME nickel inventory was 250,878 mt, hitting a new high again. Amid 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.