[SMM Nickel Midday Review] Nickel prices edged higher on November 20, while the US Fed remained deeply divided over whether to cut interest rates in December.

SMM Nickel November 20 News:

Macro and Market News:

(1) The minutes from the US Fed's October meeting revealed significant divergence among officials: during the October interest rate cut, several opposed the cut, while others favored cutting but also accepted holding rates steady. Several believed a rate cut should continue in December, while many advocated for maintaining the status quo.

(2) US Fed—① US authorities canceled the October non-farm payrolls report, and rescheduled the November report to December 16, meaning the Fed will lack the latest non-farm payrolls data reference at its December policy meeting.

Spot Market:

On November 20, SMM #1 refined nickel prices were 116,000-120,400 yuan/mt, with an average price of 118,200 yuan/mt, up 600 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 4,000-4,200 yuan/mt, with an average premium of 4,100 yuan/mt, unchanged from the previous day. The spot premiums/discounts quotation range for mainstream domestic brands of electrodeposited nickel was 0-500 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2601) saw a slight increase in prices at the night session, and continued to fluctuate during the daytime session, closing at 115,950 yuan/mt by the midday break, up 0.27%. Nickel prices on the SHFE and LME rebounded slightly after consecutive declines.

SHFE nickel prices found temporary support at 115,000 yuan/mt; after the continuous decline, the market experienced an oversold rebound. Before the oversupply and high inventory situation reverses, nickel prices are expected to remain relatively weak.