SMM Nickel December 1 News:
Macro and Market News:
(1) Data released by the National Bureau of Statistics (NBS) showed that in November, the manufacturing PMI was 49.2%, up 0.2 percentage points from the previous month, indicating an improvement in business activity. By enterprise size, the PMI for large enterprises was 49.3%, down 0.6 percentage points from the previous month and below the critical point; the PMIs for medium and small enterprises were 48.9% and 49.1% respectively, up 0.2 and 2.0 percentage points from the previous month, both remaining below the critical point.
(2) On Sunday, US Secretary of State Rubio, after several hours of new round negotiations with Ukrainian officials, stated that the talks between the US and Ukraine were "productive," but much work remains to be done. He also noted that Russia will play a central role in any agreement to end the conflict with Ukraine.
Spot Market:
On December 1, the SMM #1 refined nickel price was 117,100-122,400 yuan/mt, with an average price of 119,750 yuan/mt, up 250 yuan/mt from the previous trading day. The mainstream spot premiums for Jinchuan #1 refined nickel ranged from 4,700-4,900 yuan/mt, with an average premium of 4,800 yuan/mt, up 50 yuan/mt from the previous trading day. The quotation range for domestic mainstream brands of electrodeposited nickel spot premiums and discounts was -100-300 yuan/mt.
Futures Market:
The most-traded SHFE nickel 2601 contract saw its price continuously rise after the morning session opened, with a significant increase at the end of the morning session. As of the close of the morning session, it was reported at 118,490 yuan/mt, up 1.14%.
Expectations for a US Fed interest rate cut have increased, putting pressure on the US dollar index. Meanwhile, today, the non-ferrous metals sector as a whole performed strongly, driving nickel prices to rebound. Short-term expectations for nickel prices are for volatility, with long-term pressures persisting. The price range for the most-traded SHFE nickel contract is expected to be 114,000-118,000 yuan/mt.
