[SMM Nickel Midday Review] Nickel Prices Continued to Decline on November 17, Central Bank Conducted 800 Billion Yuan in Reverse Repo Operations

SMM Nickel November 17 News:

Macro and Market News:

(1) Li Qiang presided over a State Council executive meeting: studying the work related to the in-depth implementation of major national strategies and building up security capacity in key areas; deploying measures to enhance the supply-demand adaptability of consumer goods and further promote consumption policies.

(2) To maintain ample liquidity in the banking system, on November 17, 2025, the People's Bank of China conducted 800 billion yuan in outright reverse repo operations via fixed quantity, interest rate tender, and multiple-price award methods, with a maturity of 6 months (182 days).

Spot Market:

On November 17, the SMM #1 refined nickel price was 116,500-120,900 yuan/mt, with an average price of 118,700 yuan/mt, down 900 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, flat from the previous trading day. The spot premiums and discounts quotation range for mainstream domestic brands of electrodeposited nickel was -50-400 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2512) fell to a low near 116,000 yuan/mt during the session, reaching a stage low before rebounding slightly. It closed at 116,950 yuan/mt by the midday break, down 0.75%.

Hawkish signals from US Fed officials lowered market expectations for a December interest rate cut, pushing the US dollar index higher. Amid macro pressure and high market inventory, nickel prices are expected to remain weak in the near term, with a reference price range of 116,000-122,000 yuan/mt.