To the surprise of many market participants, China’s central bank recently implemented a notable adjustment to its standing lending facility (SLF) interest rates. The People’s Bank of China announced on Tuesday that the overnight rate has been reduced by 10 basis points to 2.75 percent. Similarly, the seven-day and one-month rates have also been lowered by 10 basis points each to 2.9 percent and 3.25 percent, respectively. These revised rates officially went into effect on June 13 according to the People’s Bank of China.

Nickel prices jump upward
The reaction on the markets followed promptly and caused nickel prices in Europe and Asia in particular to jump upward. In Europe they increased by more than 6%, in Asia/China by more than 5%. But also the other base metals were able to make gains. The first upward movements in Asian stainless steel prices could already be seen today on the spot markets.