[SMM Nickel Midday Review] Nickel prices fluctuated rangebound on December 2, as the US November ISM Manufacturing PMI came in at 48.2.

SMM Nickel December 2 News:

Macro and Market News:

(1) The US November ISM Manufacturing PMI was 48.2, missing market expectations of 49, marking the ninth consecutive month in contraction territory.

(2) A spokesperson for the Ministry of Foreign Affairs announced that, at the invitation of President Xi Jinping, French President Macron will pay a state visit to China from December 3 to 5.

Spot Market:

On December 2, SMM #1 refined nickel prices were 117,200-122,600 yuan/mt, with an average price of 119,900 yuan/mt, up 150 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 4,800-5,000 yuan/mt, with an average premium of 4,900 yuan/mt, up 100 yuan/mt from the previous trading day. The spot premiums and discounts quotation range for mainstream domestic electrodeposited nickel brands was -150-400 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2601) settled up 0.26% at 117,790 yuan/mt; after opening in the morning session, prices dropped back slightly, settling at 117,560 yuan/mt by the midday close, up 0.07%.

The US November ISM Manufacturing PMI data fell short of expectations, contracting for the ninth consecutive month, leading market expectations for a US Fed interest rate cut in December to surge significantly to 87%. Nickel prices are expected to fluctuate in the short term with lingering long-term pressure; the price range for the most-traded SHFE nickel contract is projected at 114,000-118,000 yuan/mt.