[SMM Nickel Midday Review] Nickel Prices Retreat from Highs on January 8 as Market Sentiment Shifts from Frenzy to Caution

SMM Nickel January 8 News:

Macro and Market News:

(1) The central bank announced that, to maintain ample liquidity in the banking system, the People's Bank of China conducted 1,100 billion yuan in outright reverse repo operations today, using a fixed amount, interest rate tender, and multiple-price winning method, with a maturity of three months.

(2) During his visit to Cyprus, Ukrainian President Zelensky stated that negotiations with U.S. and European partners have reached a new level, and the conflict with Russia is expected to end in H1 2026.

Spot Market:

On January 8, SMM #1 refined nickel prices were 143,400-154,700 yuan/mt, with an average price of 149,050 yuan/mt, down 1,100 yuan/mt from the previous trading day. The mainstream spot premiums for Jinchuan #1 refined nickel were quoted in the range of 8,000-10,000 yuan/mt, with an average premium of 9,000 yuan/mt, down 250 yuan/mt from the previous trading day. The spot premiums and discounts for mainstream domestic brands of electrodeposited nickel were quoted in the range of -200-300 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2602) surged to 149,000 yuan/mt during the night session before pulling back, and continued to decline in the morning session, closing at 142,020 yuan/mt, down 2.30%.

After yesterday's strong rally, nickel prices experienced a significant pullback today. LME nickel inventory increased by 20,000 mt in a single day, bringing the total to 270,000 mt. Market sentiment shifted from frenzy to caution, reflecting a typical intense battle between "strong expectations" and "weak reality." In the short term, close attention should be paid to the specific implementation and enforcement of Indonesia's nickel industry policies, as market volatility may intensify.