SMM Nickel August 25 News:
Macro and Market News:
(1) The US Treasury Department announced the expansion of secondary sanctions scope, imposing sanctions on entities and countries worldwide that still maintain business dealings with Iran, releasing relevant sanction decisions on technology, gold, aviation, and shipping. The Treasury also imposed sanctions on nearly 60 entities, individuals, and vessels.
(2) The People's Bank of China: It will conduct overnight reverse repo operations from August 27 to September 1, with daily operation volume not exceeding 600 billion yuan; on August 25, it will conduct a 500 billion yuan one-year MLF operation.
Spot Market:
On August 25, the average price of SMM #1 refined nickel was 129,800 yuan/mt, down 1,650 yuan/mt from the previous trading day. In terms of spot premiums, the average for Jinchuan #1 refined nickel was 1,550 yuan/mt, unchanged from the previous trading day, while domestic mainstream brand electrodeposited nickel ranged 0-500 yuan/mt.
Futures Market:
The most-traded SHFE nickel contract (2610) drifted lower in early trading, closing at 129,180 yuan/mt as of the morning session close, down 0.75%.
The expectation of Indonesian quota supply release and high inventories formed pressure, but a weaker US dollar and cost support provided bottom support. In the short term, the most-traded SHFE nickel contract is expected to trade in a range of 127,000-132,000 yuan/mt.
