SMM Nickel, July 21:
Macro and Market News:
(1) The CSRC held an investor symposium to solicit opinions and suggestions. Investor representatives suggested taking multiple measures to guide medium and long-term funds into the market and standardize the development of quantitative trading and AI applications.
(2) Iran stated that mediators proposed a 10-day ceasefire between the US and Iran to seek the resumption of implementation of the memorandum of understanding. Iran's Foreign Ministry confirmed receiving the mediators' proposal: possibly negotiating with the US based on national interests.
Spot Market:
On July 21, the average price of SMM #1 refined nickel was 130,250 yuan/mt, down 600 yuan/mt from the previous trading day. On the spot premiums side, the average Jinchuan #1 refined nickel premium was 1,650 yuan/mt, flat from the previous trading day, while the premium range for mainstream domestic brands of electrodeposited nickel was -300 to 500 yuan/mt.
Futures Market:
The most-traded SHFE nickel 2609 contract fluctuated higher in morning trading, reporting 130,370 yuan/mt as of the morning close, up 0.09%.
As US-Iran tensions escalated, shipping through the Strait of Hormuz was restricted, and cost support from sulfur strengthened. However, refined nickel inventories remain difficult to digest, with both domestic and international inventories staying high and destocking progressing slowly. In the short term, the trading range for the most-traded SHFE nickel contract is expected to be 125,000-130,000 yuan/mt.
