【SMM Nickel Midday Review】Nickel prices extended their decline on December 10, as the US Fed's Federal Open Market Committee (FOMC) meeting is expected to convene.

SMM Nickel December 10 News:

Macro and Market News:

(1) On the afternoon of December 9, He Lifeng, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, met in Beijing with Allen, Senior Advisor of the Cohen Group. He Lifeng stated that China and the US should continuously expand the list of cooperation and open up new space for bilateral economic and trade relations.

(2) Trump started the final round of interviews for Fed Chairman candidates this week, with Hassett leading. Hassett: The Fed has ample room to cut interest rates significantly, and interest rate decisions will be made based on my judgment.

Spot Market:

On December 10, SMM #1 refined nickel prices were 116,400-121,900 yuan/mt, with an average price of 119,150 yuan/mt, down 1,200 yuan/mt from the previous trading day. The mainstream spot premiums/discounts for Jinchuan #1 refined nickel were in the range of 4,900-5,200 yuan/mt, with an average premium of 5,050 yuan/mt, up 150 yuan/mt from the previous trading day. The spot premiums/discounts for domestic mainstream brands of electrodeposited nickel were quoted in the range of -100-400 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2601) opened lower and moved lower during the night session, breaking below the 117,000 yuan/mt level, closing down 1.23%. It fluctuated rangebound after the morning session opened, and as of the close, it was reported at 116,920 yuan/mt, down 0.7%.

Ahead of the Wednesday (December 11) US Fed FOMC meeting, cautious sentiment emerged in the market, putting overall pressure on the metal market. In the short term, nickel prices are expected to maintain fluctuating trend, with the most-traded SHFE nickel contract price projected to trade in the range of 114,000-118,000 yuan/mt.