[SMM Nickel Midday Review] Nickel prices fell sharply on November 14, as concerns over the US Fed's hawkish stance triggered cautious market sentiment.

SMM Nickel November 14 News:

Macro and Market News:

(1) Central bank data showed that the cumulative increase in aggregate financing to the real economy (AFRE) in the first ten months of 2025 was 30.9 trillion yuan, up 3.83 trillion yuan from the same period last year. The outstanding AFRE was 437.72 trillion yuan at the end of October 2025, up 8.5% YoY. The broad money (M2) balance was 335.13 trillion yuan at the end of October, up 8.2% YoY. New yuan loans in the first ten months increased by 14.97 trillion yuan.

(2) US White House National Economic Council Director Hassett: The October employment report will be released soon but will not include the unemployment rate; Q4 GDP is expected to decline by 1.5% due to the government shutdown.

Spot Market:

On November 14, the SMM #1 refined nickel price was 117,400-121,800 yuan/mt, with an average price of 119,600 yuan/mt, down 1,050 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 3,800-4,000 yuan/mt, with an average premium of 3,900 yuan/mt, up 100 yuan/mt from the previous trading day. The spot premium/discount quotation range for mainstream domestic brands of electrodeposited nickel was -100-400 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2512) opened sharply lower in the morning session and continued its downward trend, closing at 117,530 yuan/mt by the midday break, down 1.1%.

Market caution was triggered by concerns over a "hawkish" US Fed, while the absence of key economic data deprived the market of reliable benchmarks to assess the Fed's policy path. Noticeable divergences among Fed officials on interest rates further heightened uncertainty, putting pressure on the nonferrous metals sector, including nickel. Nickel prices are expected to remain weak in the near term.