[Nickel Midday Market Review] Nickel prices dropped slightly on February 27, indirect talks between Iran and the U.S. ended with differences remaining between the two sides.

SMM Nickel February 27 News:

Macro and Market News:

(1) Indirect talks between the U.S. and Iran concluded. The Iranian foreign minister stated the negotiations made good progress, with differences remaining but nearing consensus in some areas. Technical talks will be held on March 2.

(2) China's Ministry of Commerce responded regarding the upcoming sixth round of U.S.-China trade talks: China is willing to work with the U.S. to properly manage differences and expand practical cooperation through equal consultations.

Spot Market:

On February 27, SMM #1 refined nickel prices were 137,600-147,700 yuan/mt, averaging 142,650 yuan/mt, down 1,050 yuan/mt from the previous trading day. Spot premiums for Jinchuan #1 refined nickel were quoted in the range of 7,500-8,200 yuan/mt, averaging 7,850 yuan/mt, down 300 yuan/mt from the previous day. Spot premiums/discounts for mainstream domestic electrodeposited nickel were quoted at -600-300 yuan/mt, showing a decline.

Futures Market:

The most-traded SHFE nickel contract (2605) opened lower and trended down, fluctuating at lows during the morning session, closing at 140,360 yuan/mt by the morning close, down 0.82%.

Nickel prices saw a slight correction today, but the medium and long-term logic of tightening supply from the mine end remained unchanged, with the most-traded SHFE nickel contract expected to fluctuate around 140,000 yuan/mt in the short term.