[SMM Nickel Midday Review] Nickel prices edged down on May 25, PBOC conducted 600 billion yuan MLF operation

SMM Nickel News May 25:

Macro and market news:

(1) Waller was sworn in, emphasizing that the US Fed will be "reform-oriented"; US Fed Governor Waller: The current stance is to keep rates stable in the near term. If inflation expectations become unanchored, rate hikes will be needed.

(2) The PBOC announced that to maintain ample liquidity in the banking system, on May 25, 2026, the People's Bank of China will conduct a 600 billion yuan MLF operation with a fixed quantity, rate tender, and multiple-price winning method, with a tenor of 1 year.

Spot market:

On May 25, SMM #1 refined nickel prices rose 500 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,150 yuan/mt, down 100 yuan/mt from the previous trading day, while domestic mainstream brand electrodeposited nickel ranged from -400 to 500 yuan/mt.

Futures market:

The most-traded SHFE nickel 2606 contract moved sideways in a narrow range during the morning session, closing at 143,810 yuan/mt, up 0.23%.

Global visible inventory of refined nickel remains at high levels, and weak consumption is unable to quickly digest the surplus inventory. Nickel prices lack upward momentum, and the most-traded SHFE nickel contract is expected to move sideways within the range of 140,000-150,000 yuan/mt.