[SMM Nickel Midday Review] Nickel prices fell sharply on November 5, once again approaching the 119,000 yuan/mt mark.

SMM Nickel November 5 News:

Macro and Market News:

(1) The US dollar index extended its gains and broke through the 100 mark, hitting a three-month high, ultimately closing up 0.33% at 100.18, as internal disagreements within the US Fed cast doubt on the prospect of another interest rate cut this year. The benchmark 10-year US Treasury yield closed at 4.090%, while the policy-sensitive 2-year US Treasury yield closed at 3.586%.

(2) The central bank announced that, to maintain ample liquidity in the banking system, the People's Bank of China conducted 700 billion yuan in outright reverse repo operations on November 5, 2025, using a fixed amount, interest rate tender, and multiple-price award method, with a maturity of 3 months (91 days).

Spot Market:

On November 5, the SMM #1 refined nickel price ranged from 119,400-122,500 yuan/mt, with an average price of 120,950 yuan/mt, down 850 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 2,700-2,900 yuan/mt, with an average premium of 2,800 yuan/mt, up 200 yuan/mt from the previous trading day. The spot premiums and discounts quotation range for mainstream domestic brands of electrodeposited nickel was -100-300 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2512) fell sharply in early trading, approaching a low of 119,000 yuan/mt, before rebounding slightly. By the midday close, it was quoted at 119,810 yuan/mt, down 0.42%.

The US dollar index has recently rebounded consecutively to near the 100 psychological level. Expectations that the US Fed may pause further interest rate cuts originally scheduled for December, adopting a more "hawkish" stance, have provided support for the US dollar. The strengthening dollar has, to some extent, put pressure on nonferrous metal prices. Nickel prices are expected to continue moving sideways in the near term, with a reference price range of 119,000-123,000 yuan/mt.