[SMM Nickel Midday Review] Nickel prices dropped slightly on November 11, as a US Fed governor suggested continuing to cut interest rates in December.

SMM Nickel November 11 News:

Macro and Market News:

(1) To further stimulate private investment vitality and promote its development, the General Office of the State Council recently issued the "Several Measures on Further Promoting the Development of Private Investment," proposing 13 targeted policy measures. These include guiding private capital to orderly participate in the infrastructure construction of the low-altitude economy sector. Increasing the support from central budget investment for eligible private investment projects, actively playing a guiding and driving role. Actively supporting more eligible private investment projects to issue infrastructure real estate investment trusts (REITs).

(2) US Fed Governor Stephen Milan said on Monday local time that to prevent further weakening of economic momentum, the Fed should continue to cut interest rates in December, with a magnitude of "at least 25 basis points, but 50 basis points is more appropriate."

Spot Market:

On November 11, the SMM #1 refined nickel price was 119,400-123,000 yuan/mt, with an average price of 121,300 yuan/mt, up 100 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 3,500-3,700 yuan/mt, with an average premium of 3,600 yuan/mt, flat from the previous trading day. The spot premium/discount quotation range for mainstream domestic brands of electrodeposited nickel was -100-300 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2512) moved downwards after a higher opening in the night session, and prices continued to fluctuate at lows in the morning session. As of the midday close, it was reported at 119,210 yuan/mt, down 0.23%.

Signs of easing emerged in China-US trade relations, as the US canceled the additional 10% tariffs on some Chinese goods, suspended the 24% retaliatory tariffs for one year, and postponed the Section 301 investigation into China's maritime, logistics, and shipbuilding industries. In China, the Consumer Price Index (CPI) rose 0.2% YoY in October, and the Producer Price Index (PPI) turned from a decline to an increase MoM, marking its first rise this year, indicating a recovery in both domestic and external macro fronts. In the short term, nickel prices are expected to maintain a fluctuating trend within the current range, with a reference price of 119,000-123,000 yuan/mt.