[SMM Nickel Midday Review] On August 13, nickel prices edged down, while the US July CPI came in at 3.4%, in line with market expectations

SMM Nickel, Aug 13:

Macro and Market News:

(1) Data released by the US Department of Labor showed that the US July unadjusted CPI rose 3.4% YoY and core CPI rose 2.5% YoY, both in line with market expectations, dampening investor expectations for a rate hike by the US Fed in September.

(2) The People's Bank of China released its Q2 2026 China Monetary Policy Implementation Report, saying it will continue to implement an appropriately accommodative monetary policy. The report proposed comprehensively using and adjusting monetary policy tools in a timely manner to keep liquidity ample and social financing conditions relatively loose. It also called for promptly planning and introducing pragmatic and effective incremental policies, stepping up countercyclical adjustment, expanding and enriching the central bank's macroprudential and financial stability functions, innovating financial instruments, and keeping financial markets operating smoothly.

Spot Market:

On Aug 13, the average price of SMM #1 refined nickel was 128,750 yuan/mt, down 450 yuan/mt from the previous trading day. In terms of spot premiums, the average premium for Jinchuan #1 refined nickel was 1,250 yuan/mt, down 50 yuan/mt from the previous trading day, while premiums for mainstream domestic brands of electrodeposited nickel ranged from -100 to 500 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2609) continued to trend lower during the morning session, and as of the morning close it stood at 128,330 yuan/mt, down 0.16%.

Nickel prices are currently in a highly uncertain state, with policy expectations swinging sharply and macro headwinds intertwined with geopolitical risks, and are expected to remain subject to wild swings in the short term, with the most-traded SHFE nickel contract trading in a range of 125,000-133,000 yuan/mt.