[SMM Nickel Midday Review] On December 26, the LME was closed, while SHFE nickel prices fluctuated at highs.

SMM Nickel December 26:

Macro and Market News:

(1) He Yongqian, spokesperson for the Ministry of Commerce, responded on the 25th to questions regarding the U.S. announcement of additional 301 tariffs on certain Chinese semiconductor products, stating that China has noted the situation and lodged solemn representations with the U.S. through the China-U.S. economic and trade consultation mechanism. China does not agree with the so-called conclusions of the U.S. 301 investigation and firmly opposes the additional 301 tariffs on Chinese semiconductor products.

(2) Russian Deputy Prime Minister Novak: The plan to produce 100 million mt of liquefied natural gas annually has been delayed by several years due to sanctions, but plant construction continues.

Spot Market:

On December 26, the SMM #1 refined nickel price was 125,700-133,700 yuan/mt, with an average price of 129,700 yuan/mt, up 2,300 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 7,000-7,200 yuan/mt, with an average premium of 7,100 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) hovered at highs today, closing at 126,160 yuan/mt by the midday break, up 0.84%.

The nickel market is currently in a fierce battle between "strong expectations" and "weak reality." In the short term, nickel prices are expected to fluctuate upward, driven by market sentiment, but upside potential remains capped by high inventory and weak demand fundamentals.