[SMM Nickel Midday Review] Nickel Prices Fluctuated Upward on April 8 as U.S. and Iran Reached Ceasefire Agreement

SMM Nickel News, April 8:

Macro and market news:

(1) US President Trump posted on social media on April 7, stating: "I have agreed to a pause on the bombing and strikes on Iran for a period of two weeks." Iran's Supreme National Security Council issued a statement in the early hours of April 8 local time, saying that based on the Supreme Leader's recommendation and the approval of the Supreme National Security Council, it accepted the ceasefire proposal put forward by Pakistan.

(2) Premier Li Qiang recently signed a State Council decree to promulgate the "Regulations of the State Council on Industry Chain and Supply Chain Security," effective from the date of promulgation. The Regulations aim to prevent industry chain and supply chain security risks, enhance the resilience and security of industry chains and supply chains, and safeguard economic and social stability as well as national security.

Spot market:

On April 8, SMM #1 refined nickel prices fell 550 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 3,600 yuan/mt, down 50 yuan/mt from the previous trading day; mainstream domestic electrodeposited nickel brands ranged from -600-400 yuan/mt.

Futures market:

The most-traded SHFE nickel 2605 contract rose in the early session before trading in a range, closing the morning session at 134,250 yuan/mt, up 0.15%.

In the short term, Indonesia's policy tightening and cost support have built a solid floor for nickel prices, but high inventory and weak end-use demand capped upside room. The most-traded SHFE nickel contract is expected to trade in a core range of 133,000-143,000 yuan/mt.