[SMM Nickel Midday Review] Nickel Prices Rise Slightly on January 5, South Korean President Lee Jae-myung Makes First Visit to China

SMM Nickel January 5 News:

Macro and Market News:

(1) South Korean President Lee Jae-myung paid a state visit to China from the 4th to the 7th. This visit is President Lee's first to China since taking office and marks the first visit by a South Korean president to China in six years.

(2) The State Council issued the "Comprehensive Solid Waste Management Action Plan," which states that, in principle, no new approval will be granted for the construction of mineral processing projects that lack their own mines or supporting facilities for the utilization and disposal of tailings; by 2030, the annual comprehensive utilization volume of bulk solid waste is expected to reach 4.5 billion mt, and the annual recycling volume of major renewable resources is expected to reach 510 million mt; environmental law enforcement and supervision will be strengthened, and environmental crimes related to solid waste will be severely cracked down on.

Spot Market:

On January 5, the SMM #1 refined nickel price was 133,700-142,600 yuan/mt, with an average price of 138,150 yuan/mt, up 600 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 7,000-7,800 yuan/mt, with an average premium of 7,400 yuan/mt, down 200 yuan/mt from the previous trading day. The spot premium/discount quotation range for mainstream domestic brands of electrodeposited nickel was -200-300 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2602) opened higher in the morning session, briefly breaking through the 136,000 yuan/mt level before pulling back slightly. It closed the morning session at 134,110 yuan/mt, up 0.58%.

Nickel prices are expected to continue fluctuating between the "expectations of supply contraction due to tightening policies in Indonesia" and the "reality of high inventory and weak demand." The trading range for the most-traded SHFE nickel contract is likely to remain between 125,000-135,000 yuan/mt.