[SMM Nickel Midday Review] On March 10, nickel prices rebounded as four Indonesian HPAL nickel plants suspended production

SMM Nickel News, March 10:

Macro and Market Updates:

(1) US President Trump: The war has basically ended, and he is considering controlling the Strait of Hormuz; it is “still a long way off” from deploying US ground troops to Iran, and it is too early to talk about seizing Iran’s oil.

(2) Russian President Putin and US President Trump held a phone call that day, focusing on the Middle East situation related to Iran and the progress of negotiations on the Ukraine issue.

Spot Market:

On March 10, SMM #1 refined nickel prices rose by 2,700 yuan/mt from the previous trading day. In terms of spot premiums, the average for Jinchuan #1 refined nickel was 6,650 yuan/mt, down 600 yuan/mt from the previous trading day; the range for domestically mainstream brands of electrodeposited nickel was -300-400 yuan/mt.

Futures Market:

After the morning open, the most-traded SHFE nickel 2605 contract plunged straight away, hitting a low of 132,000 yuan/mt, then rebounded sharply. As of the morning close, it was quoted at 137,240 yuan/mt, up 0.87%.

In the morning session, nickel prices rebounded on news that four Indonesian high-pressure acid leaching (HPAL) nickel plants were forced into a full shutdown due to a landslide accident in February. In the short term, the most-traded SHFE nickel contract price is expected to move sideways within the 130,000-140,000 yuan/mt range.