SMM Nickel January 23 Report:
Macro and Market News:
(1) Pan Gongsheng, Governor of the People's Bank of China, stated that in 2026, the People's Bank of China will continue to implement an appropriately accommodative monetary policy, with promoting stable economic growth and a reasonable rebound in prices as key considerations for monetary policy. Pan Gongsheng also mentioned that there is still some room for RRR cuts and interest rate cuts this year, and efforts will continue to maintain the stable operation of financial markets.
(2) The central bank announced that to maintain ample liquidity in the banking system, on January 23, 2026, the People's Bank of China will conduct a 900 billion yuan MLF operation with a fixed quantity, interest rate tender, and multiple-price winning method, with a maturity of one year.
Spot Market:
On January 23, the price range for SMM #1 refined nickel was 143,400-153,700 yuan/mt, with an average price of 148,550 yuan/mt, up 2,800 yuan/mt from the previous trading day. The spot premium quotation range for Jinchuan #1 refined nickel was 8,000-8,500 yuan/mt, with an average premium of 8,250 yuan/mt, down 500 yuan/mt from the previous trading day. The spot premium/discount quotation range for mainstream domestic brands of electrodeposited nickel was -300-600 yuan/mt.
Futures Market:
The most-traded SHFE nickel contract (2602) surged strongly in the morning session and continued to strengthen in the afternoon, hitting an intraday high of 150,000 yuan. By the close, it was quoted at 148,010 yuan/mt, up 3.99%.
The nickel market remains in a fierce tug-of-war between "strong expectations for Indonesian policies" and "the reality of high inventory and weak demand." In the short term, as long as expectations for production cuts on the Indonesian supply side persist, nickel prices are likely to hover at highs.
