SMM Nickel December 8 News:
Macro and Market News:
(1) The US core PCE price index annual rate for September unexpectedly pulled back to 2.8%, hitting a three-month low, while market expectations were for it to record 2.9% for the third consecutive month.
(2) Central bank data showed that foreign exchange reserves stood at $3,346.372 billion at the end of November. China's gold reserves at the end of November were 74.12 million ounces, an increase of 30,000 ounces MoM, marking the 13th consecutive month of gold accumulation.
Spot Market:
On December 8, the SMM #1 refined nickel price was 117,500-122,900 yuan/mt, with an average price of 120,200 yuan/mt, up 150 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 4,800-5,100 yuan/mt, with an average premium of 4,950 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 -200-400 yuan/mt.
Futures Market:
The most-traded SHFE nickel contract (2601) fluctuated downward after opening in the morning session, and as of the midday close, it was reported at 117,870 yuan/mt, up 0.09%.
Market expectations for a US Fed interest rate cut in December continued to heat up, with the probability rising to a high of approximately 89% based on the latest data. Macro front is favorable, but nickel's own fundamentals limit the upside room for prices. Nickel prices are expected to maintain a fluctuating trend in the short term, with the price range for the most-traded SHFE nickel contract expected to be 114,000-118,000 yuan/mt.
