[SMM Nickel Midday Review] Nickel Prices Fell by 3,000 yuan/mt on December 16, Spot Premiums Continued to Rise

SMM Nickel December 16 News:

Macro and Market News:

(1) The National Development and Reform Commission (NDRC) published an article in the Qiushi magazine, emphasizing the need to firmly implement the strategy of expanding domestic demand, including boosting residents' willingness to consume and enhancing their consumption capacity. The article proposed vigorously improving residents' consumption willingness by promoting special campaigns to boost consumption, stabilizing bulk consumption, and creating new consumption scenarios to stimulate spending.

(2) The competition for the US Fed Chairman candidate intensified, as Kevin Hassett faced opposition from senior officials close to Trump due to concerns over his close ties with Trump.

Spot Market:

On December 16, SMM #1 refined nickel prices were 111,700-117,800 yuan/mt, with an average price of 114,750 yuan/mt, down 2,650 yuan/mt from the previous trading day. The mainstream spot premiums/discounts for Jinchuan #1 refined nickel were quoted in the range of 5,500-5,700 yuan/mt, with an average premium of 5,600 yuan/mt, up 300 yuan/mt from the previous trading day. The spot premiums/discounts for mainstream domestic brands of electrodeposited nickel were quoted in the range of -100-400 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2601) pulled back significantly during the night session, with prices falling below the previous low of 114,000 yuan. It fluctuated in the morning session and closed at 112,070 yuan/mt, down 2.55%.

Nickel inventory remains high, with weak demand and low willingness to pick up goods in the spot market, showing no signs of tight supply. Under the dual pressure of cautious macro sentiment and weak fundamentals, nickel prices are expected to maintain a weak trend in the short term. The most-traded SHFE nickel contract is projected to trade in the range of 112,000-116,000 yuan/mt.