Yesterday, SHFE nickel and stainless steel futures rallied sharply, significantly lifting market sentiment. The most-traded SHFE nickel contract closed up 3.01% at Yuan 132,940/tonne, hitting an intraday high of Yuan 133,000/tonne, a gain of approximately Yuan 3,800 in a single session. The most-traded stainless steel contract closed up 1.09% at Yuan 14,795/tonne. LME nickel was last at US $17,210/tonne, up US $380/tonne. On the macro front, US June CPI and PPI came in significantly below expectations, further cooling market expectations of Federal Reserve rate hikes, and a weaker US dollar boosted base metals. On the micro front, a combination of factors -- including Indonesia's Ministry of Energy and Mineral Resources stating that nickel ore quotas would only be used to meet smelting needs, persistent power tightness at some industrial parks in Indonesia, and some destocking of domestic nickel social inventories.