[SMM Nickel Midday Review] Nickel prices edged down on April 21, PBOC kept 1-year and 5-year LPR unchanged

SMM Nickel News, April 21:

Macro and market news:

(1) The two-week "temporary ceasefire" between the US and Iran is about to expire on April 22. US President Trump unilaterally finalised a date for "second-round talks" and warned that extending the ceasefire before a deal is reached is "highly unlikely," while Iran maintained a firm stance and has been reluctant to agree to "attend."

(2) PBOC kept the one-year and five-year LPR unchanged at 3% and 3.5%, respectively.

Spot market:

On April 21, SMM #1 refined nickel prices fell 1,050 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,950 yuan/mt, up 200 yuan/mt from the previous trading day; mainstream domestic electrodeposited nickel brands ranged from -500-600 yuan/mt.

Futures market:

The most-traded SHFE nickel 2605 contract moved sideways in the morning session, closing at 139,990 yuan/mt, down 0.69%.

The positive impact of Indonesia's nickel ore HPM new policy has been gradually digested, and profit-taking emerged, putting nickel prices under correction pressure. However, the medium-term support logic for nickel prices remains solid. Going forward, attention should be paid to changes in actual transaction prices of Indonesian nickel ore and the impact of US-Iran geopolitical tensions on sulphur supply. The most-traded SHFE nickel contract price is expected to trade in the range of 140,000-150,000 yuan/mt.