[SMM Nickel Midday Review] Nickel prices fell sharply on December 15, while the value added of industrial enterprises above the designated size increased by 4.8% YoY in November.

SMM Nickel December 15 News:

Macro and Market News:

(1) Data from the National Bureau of Statistics (NBS) showed that in November, the value-added of industrial enterprises above the designated size increased by 4.8% YoY in real terms. On a MoM basis, the value-added of industrial enterprises above the designated size increased by 0.44% from the previous month. From January to November, the value-added of industrial enterprises above the designated size increased by 6.0% YoY.

(2) Three departments, including the Ministry of Commerce, issued a notice proposing 11 measures to strengthen business and financial coordination to boost consumption, including the use of digital yuan red packets and the development of consumer loans. Meanwhile, the national consumer goods trade-in subsidy policy has entered its final stage, with the consumption rate of the fourth batch of 69 billion yuan in funds exceeding 90%.

Spot Market:

On December 15, the SMM #1 refined nickel price ranged from 114,500 to 120,200 yuan/mt, with an average price of 117,350 yuan/mt, down 850 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 5,100-5,500 yuan/mt, with an average premium of 5,300 yuan/mt, up 100 yuan/mt from the previous trading day. The spot premiums and discounts quotation range for mainstream domestic brands of electrodeposited nickel was -100-400 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2601) pulled back after hitting highs during the night session and fluctuated at lows in the morning session. By the close, it was quoted at 114,710 yuan/mt, down 0.86%.

Under the combined pressure of high inventory and oversupply in the nickel market's fundamentals, prices may continue to be in the doldrums in the short term. The price range for the most-traded SHFE nickel contract is expected to be 112,000-116,000 yuan/mt.