Last week, SHFE nickel prices exhibited an upward trend, though significant gains were capped by high inventories and a persistent supply surplus. The overall trading range was Yuan 113,000 to Yuan 118,000/tonne. On the macro front, the stronger expectation for a U.S. Federal Reserve rate cut in December, eased China-U.S. tensions, and nickel's previously undervalued status collectively fueled the week's price strength.In the nickel ore sector, premiums for the first period of December held steady near $25-$26/wmt, and the overall premium remained firm. Although a decline in the benchmark price alleviated some pressure on the industry chain, no new information on the RKAB approval process in Indonesia suggests that nickel ore prices are unlikely to fall further amid a slight recovery in industry chain margins.Regarding refined nickel, unprofitability led to gradual production cuts at nickel enterprises. Earlier, prices approached the cost line for integrated MHP production.