[SMM Nickel Midday Review] Nickel prices plummeted on November 18, breaking through multiple key support levels.

SMM Nickel November 18 News:

Macro and Market News:

(1) Expectations for a US Fed interest rate cut in December cooled, and the US dollar index continued its rebound, ultimately closing up 0.272% at 99.53; US Treasury yields held steady, with the benchmark 10-year yield finally closing at 4.143%, and the policy-sensitive 2-year yield closing at 3.619%. Spot gold plunged during the session, falling for the third consecutive trading day, at one point dropping nearly $100 from the day's high, and ultimately closed down 0.83%.

(2) European Commission: Raised this year's GDP growth forecast from 0.9% to 1.3%, as inflation is approaching the European Central Bank's target.

Spot Market:

On November 18, the SMM #1 refined nickel price ranged from 114,800-119,100 yuan/mt, with an average price of 116,950 yuan/mt, down 1,750 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 3,900-4,200 yuan/mt, with an average premium of 4,050 yuan/mt, up 150 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) fell 1.08% (down 1,260 yuan) during the previous night session, and the support level of 116,000 yuan/mt was broken; prices declined further during the daytime session, closing the morning session at 114,850 yuan/mt, down 1.66%.

"Hawkish" signals released by US Fed officials lowered market expectations for a December interest rate cut, pushing the US dollar index higher. Against the backdrop of macro pressure and high market inventory, nickel prices are expected to remain weak in the short term.