[SMM Nickel Midday Review] Nickel prices continued to decline on May 15; broad money (M2) in April was up 8.6% YoY

SMM Nickel News, May 15:

Macro and Market News:

(1) PBOC data showed that at the end of April, broad money (M2) balance stood at 353.04 trillion yuan, up 8.6% YoY. In the first four months, RMB deposits increased by 14 trillion yuan, and RMB loans increased by 8.59 trillion yuan. Cumulative aggregate social financing in the first four months totaled 15.45 trillion yuan, down 893 billion yuan from the same period last year.

(2) New York Fed President Williams stated that due to the uncertainty brought by the Middle East war, the central bank does not need to consider changes in interest rate policy for now, and neither interest rate cuts nor hikes are under consideration at the moment.

Spot Market:

On May 15, SMM #1 refined nickel prices fell 2,350 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,400 yuan/mt, up 50 yuan/mt from the previous trading day, while domestic mainstream brand electrodeposited nickel ranged from -500 to 500 yuan/mt.

Futures Market:

The most-traded SHFE nickel 2606 contract traded at low levels during the morning session, closing at 143,540 yuan/mt, down 1.82%.

The nickel market is currently caught in an ongoing tug-of-war between strong expectations of tightening supply and the reality of high inventory and weak demand, lacking new catalysts to drive a unilateral rally. In the short term, the most-traded SHFE nickel contract is expected to trade in the range of 145,000-150,000 yuan/mt.