[SMM Nickel Midday Review] Nickel prices were in the doldrums on November 3, with US Q3 economic growth expected to approach 4%.

SMM Nickel November 3 News:

Macro and Market News:

(1) On October 31, Premier Li Qiang of the State Council presided over an executive meeting of the State Council to study deepening reforms in key areas and expanding institutional opening-up. The meeting emphasized the need to focus on deepening reforms in key areas to drive high-level opening-up, enhance the openness of commodity markets, optimize service market access rules, and improve the regulatory system for the opening-up of factor markets. It is essential to proactively align with high-standard international economic and trade rules, actively expand autonomous opening-up, and steadily broaden institutional opening-up in rules, regulations, management, and standards. Efforts should be made to leverage the advantages of high-level open platforms such as pilot free trade zones and free trade ports, explore and form more replicable and scalable reform outcomes, and continuously enhance the effectiveness of institutional opening-up.

(2) Hassett, Director of the White House National Economic Council, stated that US economic growth in Q3 is expected to be close to 4%. US Treasury Secretary Besant noted that some economic sectors are in recession, and if inflation declines, the US Fed should cut interest rates.

Spot Market:

On November 3, the SMM #1 refined nickel price was 120,500-123,500 yuan/mt, with an average price of 122,000 yuan/mt, up 50 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 2,500-2,700 yuan/mt, with an average premium of 2,600 yuan/mt, up 50 yuan/mt from the previous trading day. The spot premiums/discounts quotation range for mainstream domestic brands of electrodeposited nickel was -200-300 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2512) surged in early trading before pulling back, moving sideways in the doldrums overall. By the midday close, it was quoted at 120,720 yuan/mt, up 0.07%.

The outcomes of the China-US summit were relatively positive. The US canceled the additional 10% "fentanyl tariff" on Chinese goods and extended the suspension of the 24% reciprocal tariff for one year. Simultaneously, the US will suspend its Section 301 investigation measures against China's maritime, logistics, and shipbuilding industries for one year. This progress alleviated market concerns about escalating trade friction. LME nickel inventory increased to 252,102 mt (up 462 mt from the previous day), hitting a nearly five-year high. Nickel prices are expected to continue moving sideways, with a reference price range of 119,000-123,000 yuan/mt.