[SMM Nickel Midday Review] Nickel prices bottomed out on December 17, as US non-farm payrolls increased by 64,000 in November, exceeding expectations.

SMM Nickel December 17 News:

Macro and Market News:

(1) US nonfarm payrolls increased by 64,000 seasonally adjusted in November, higher than expectations. Nonfarm payrolls in October fell by 105,000 MoM, while market expectations were for a decline of 25,000. The US unemployment rate in November was 4.6%, a four-year high.

(2) NDRC: Vigorously boost residents' willingness to consume and deeply implement special actions to stimulate consumption. Strengthen anti-monopoly and unfair competition law enforcement.

Spot Market:

On December 17, the SMM #1 refined nickel price was 111,900-118,700 yuan/mt, with an average price of 115,300 yuan/mt, up 550 yuan/mt from the previous trading day. The mainstream spot premiums/discounts quotation range for Jinchuan #1 refined nickel was 6,000-6,500 yuan/mt, with an average premium of 6,250 yuan/mt, up 650 yuan/mt from the previous trading day. The domestic mainstream brand electrodeposited nickel spot premiums/discounts quotation range was -100-400 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2601) fluctuated at lows during the night session, and prices bottomed out in the morning session. By the close, it was reported at 113,300 yuan/mt, up 0.67%.

Current nickel prices are supported at the bottom by integrated MHP costs, leaving limited downside room. However, upside remains suppressed by high inventory and weak demand fundamentals. The most-traded SHFE nickel contract price is expected to trade in the range of 112,000-116,000 yuan/mt.