[SMM Nickel Midday Review] Nickel Prices Continued to Rise on January 14 as US CPI Growth Remained Stable in December

SMM Nickel January 14 News:

Macro and Market News:

(1) US CPI growth remained stable in December, while core CPI was slightly below expectations. Trump praised the inflation data, stating that Powell should cut interest rates significantly. Fed mouthpiece: The December CPI is unlikely to alter the current wait-and-see stance.

(2) Iran Situation—① The EU is discussing additional sanctions against Iran. ② Trump: All meetings with Iranian officials have been canceled, and the Iranian authorities will "pay a heavy price." ③ Vance is scheduled to hold a meeting with the national security team this morning to lead the formulation of a strategy towards Iran.

Spot Market:

On January 14, the SMM #1 refined nickel price was 141,300-151,600 yuan/mt, with an average price of 146,450 yuan/mt, up 1,250 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 8,000-9,500 yuan/mt, with an average premium of 8,750 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 -200-600 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2602) fluctuated upward in the morning session, closing at 143,160 yuan/mt at the morning close, up 1.47%.

The nickel market is currently caught in a fierce tug-of-war between "strong expectations for Indonesian policies" and "the reality of high inventory and weak demand," which may lead to increased volatility in the future. The fluctuation range for the most-traded SHFE nickel contract may remain at 128,000-145,000 yuan/mt.