[SMM Nickel Midday Review] Nickel prices rose slightly on December 4, as US ADP employment decreased by 32,000 in November.

SMM Nickel December 4 News:

Macro and Market News:

(1) US President Trump commented on the previous US-Russia talks regarding a "peace agreement" on the 3rd local time. Trump stated that the meeting between US Special Envoys Witkoff and Kushner and Russian President Putin was "quite good".

(2) US November ADP employment decreased by 32,000, the lowest level since March 2023, while the market expectation was an increase of 10,000.

Spot Market:

On December 4, the SMM #1 refined nickel price was 117,700-123,100 yuan/mt, with an average price of 120,400 yuan/mt, up 400 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 4,700-5,100 yuan/mt, with an average premium of 4,900 yuan/mt, up 50 yuan/mt from the previous trading day. The spot premiums and discounts quotation range for mainstream domestic brands of electrodeposited nickel was -150-400 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2601) closed at 117,590 yuan/mt during the night session, down 0.02%; it opened with a fluctuating upward trend in the morning session and was quoted at 117,930 yuan/mt by the midday close, up 0.16%.

The latest US November ADP employment data unexpectedly decreased, reinforcing signs of an economic slowdown, and market expectations for a US Fed interest rate cut in December have risen to approximately 89%. Recent inventory levels slightly declined, and nickel prices are expected to maintain a fluctuating trend in the short term, with the price range for the most-traded SHFE nickel contract projected at 114,000-118,000 yuan/mt.