[SMM Nickel Midday Review] Nickel prices fell on May 14 as US Senate confirmed Warsh as Fed Chairman

SMM Nickel News, May 14:

Macro and market news:

(1) On the evening of May 13, US President Trump arrived in Beijing by special aircraft for a state visit to China from May 13 to 15.

(2) The US Senate confirmed Warsh as Fed Chairman by a vote of 54 to 45. The Senate had previously approved Warsh as a Fed governor for a 14-year term on May 12.

Spot market:

On May 14, SMM #1 refined nickel prices fell 1,200 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,350 yuan/mt, up 100 yuan/mt from the previous trading day, while mainstream domestic electrodeposited nickel brands ranged from 700-500 yuan/mt.

Futures market:

The most-traded SHFE nickel 2606 contract opened lower in the morning session, with prices continuing to decline during the session, closing at 144,600 yuan/mt in the morning session, down 1.06%.

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.