【SMM Morning Brief Nickel 2.24】During the 2026 Chinese New Year holiday (February 15 to February 23), the domestic SHFE nickel market was closed, while LME nickel prices showed a rebound. The nickel sulphate market was relatively quiet during the holiday, with purchasing and sales activities largely halted. On the production side, some producers maintained operations, while others suspended production for maintenance.

Nickel prices fluctuated and strengthened amid policy disturbances in Indonesia, still grappling with surplus pressure. This week, nickel prices showed a fluctuating upward trend. The spot price fluctuated between 128,600 and 133,300 yuan/mt, while the SHFE nickel futures price (2505 contract) ranged from 128,250 to 132,000 yuan/mt.

[SMM Analysis: Review of the 2024 Spring Festival Nickel Market and Post-holiday Outlook] Before the holiday, the domestic pure nickel production did not decrease but increased, and the downstream reserve volume was considerable, but from the perspective of inventory, the trend of domestic accumulation has not been improved.

SHFE nickel experienced a volatile movement last week, declining by 0.29% WoW.

Nickel inventories declined after transactions picked up, supporting nickel prices recently.