[SMM Nickel Midday Review] Nickel prices were in the doldrums on November 6, as the US ADP employment figure for October increased by 42,000, exceeding market expectations.

SMM Nickel November 6 News:

Macro and Market News:

(1) US ADP employment increased by 42,000 in October, the largest gain since July 2025, exceeding market expectations of 28,000. The US ISM Non-Manufacturing PMI recorded 52.4 in October, a new high since February 2025.

(2) A spokesperson for the Ministry of Commerce stated in response to a reporter's question regarding adjustments to the export control list that, to implement the consensus from the US-China Kuala Lumpur economic and trade consultations, export control measures on 15 US entities listed in Announcement No. 13 of 2025 will be lifted effective November 10, 2025, while relevant measures on 16 US entities listed in Announcement No. 21 will continue to be suspended for one year.

Spot Market:

On November 6, the SMM #1 refined nickel price ranged from 118,900-122,100 yuan/mt, with an average price of 120,500 yuan/mt, down 450 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 2,700-3,000 yuan/mt, with an average premium of 2,850 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 -150-300 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2512) moved in the doldrums, maintaining a narrow, rangebound fluctuation during the session. By the midday close, it was reported at 119,480 yuan/mt, down 0.29%.

The US dollar index has rebounded consecutively to above 100. The US Fed may pause further interest rate cuts originally scheduled for December, and expectations of a more "hawkish" stance are supporting the dollar. The strengthening dollar is putting some pressure on nonferrous metal prices. Nickel prices are expected to move sideways in the future, with a reference price range of 119,000-123,000 yuan/mt.