[SMM Nickel Midday Review] Nickel prices experienced a significant correction on December 25, while the central bank conducted a 400 billion yuan MLF operation.

SMM Nickel December 25 News:

Macro and Market News:

(1) The central bank announced that to maintain ample liquidity in the banking system, on December 25, 2025, the People's Bank of China conducted a 400 billion yuan Medium-term Lending Facility (MLF) operation via a fixed quantity, interest rate tender, and multiple-price winning method, with a maturity of one year.

(2) The Monetary Policy Committee of the central bank held its Q4 regular meeting: It will continue to implement a moderately accommodative monetary policy and increase the strength of counter-cyclical and cross-cyclical adjustments.

Spot Market:

On December 25, the SMM #1 refined nickel price was 123,400-131,400 yuan/mt, with an average price of 127,400 yuan/mt, down 2,800 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 7,000-7,500 yuan/mt, with an average premium of 7,250 yuan/mt, up 500 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 lower and moved lower during the night session. In today's early session, it fell to a low of 123,000 yuan/mt, continuing to fluctuate at lows. As of the midday close, it was reported at 124,690 yuan/mt, a decrease of 1.79%.

After the previous continuous rise, nickel prices experienced a significant correction today, with intensified divergence between long and short positions in the market. In the short term, the price center of nickel is expected to maintain a fluctuating upward trend driven by market sentiment, but it remains suppressed by high inventory and weak demand fundamentals.