[SMM Nickel Midday Review] Nickel prices rose slightly on December 3, as Trump hinted at the next head of the US Fed.

SMM Nickel December 3 News:

Macro and Market News:

(1) Zheng Shanjie, Director of the National Development and Reform Commission (NDRC), published a signed article titled "Deeply Study and Implement the Spirit of the Fourth Plenary Session of the 20th Central Committee of the Party, Write a New Chapter of Chinese Modernization with New Achievements in High-Quality Development" in the journal "Party Building". The article states that the strategy of prioritizing employment will be thoroughly implemented, the income distribution system will be improved, the share of resident income in national income distribution will be increased, and the share of labor remuneration in primary distribution will be raised.

(2) US President Donald Trump stated that he plans to announce the new US Fed chair candidate in early 2026. Later the same day, Trump hinted that Kevin Hassett, Director of the National Economic Council, might be his choice. Trump's latest remarks have intensified speculation about the next head of the US Fed.

Spot Market:

On December 3, the SMM #1 refined nickel price was 117,300-122,700 yuan/mt, with an average price of 120,000 yuan/mt, up 100 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 4,700-5,000 yuan/mt, with an average premium of 4,850 yuan/mt, down 50 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 (2601) closed the night session at 117,060 yuan/mt, down 0.58%; it opened in the morning session and fluctuated upward, closing the morning session at 117,930 yuan/mt, up 0.16%.

The US November ISM Manufacturing PMI data fell short of expectations, contracting for the ninth consecutive month, significantly boosting market expectations for a US Fed interest rate cut in December 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.