[SMM Nickel Midday Review] Nickel Prices Rose to $130,000/mt on December 24, US Economic Growth in Q3 Was 4.3%

SMM Nickel December 24 News:

Macro and Market News:

(1) Premier Li Qiang of the State Council stated at the Central State-Owned Enterprise Leaders Meeting: Accelerate the renewal and digital-intelligent transformation of traditional infrastructure, and moderately advance the development of new-type infrastructure.

(2) The US economy expanded at a rate of 4.3% in Q3, the fastest growth in two years, but the US consumer confidence index declined for the fifth consecutive month.

Spot Market:

On December 24, the SMM #1 refined nickel price range was 126,400-134,000 yuan/mt, with an average price of 130,200 yuan/mt, up 4,950 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 6,500-7,000 yuan/mt, with an average premium of 6,750 yuan/mt, down 150 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 (2602) opened higher in the night session and surged straight up, breaking through the 130,000 yuan/mt level. It fluctuated at highs during the morning session, and as of the midday close, it was reported at 127,810 yuan/mt, a gain of 4.52%.

Expectations of supply contraction driven by Indonesian policies are the dominant market logic currently, stimulating bullish sentiment and leading to a continued significant rebound in nickel prices. In the short term, the price center of nickel is expected to maintain a fluctuating upward trend driven by market sentiment; however, the upside remains suppressed by high inventory and weak demand fundamentals, and the sustainability and extent of the rebound may face challenges.