[SMM Nickel Midday Review] On August 28, nickel prices edged down; the Trump administration refused to return to the terms of the memorandum of understanding reached with Iran in June

SMM Nickel News, August 28:

Macro and Market Updates:

(1) US media: The Trump administration refused to return to the terms of the memorandum of understanding reached with Iran in June. The White House said there are currently no negotiations; all options remain under consideration.

(2) MOFCOM responded to the US consideration of imposing an additional 7.5 tariff on China: The US has launched Section 301 investigations against 16 economies including China on the grounds of “overcapacity,” politicising economic and trade issues. This is a typical act of unilateralism and protectionism, which China firmly opposes.

Spot market:

On August 28, the average price of SMM #1 refined nickel was 128,600 yuan/mt, down 850 yuan/mt from the previous trading day. In terms of spot premiums, the average premium for Jinchuan #1 refined nickel was 1,400 yuan/mt, down 150 yuan/mt from the previous trading day, while the range for mainstream domestic brands of electrodeposited nickel was -200-400 yuan/mt.

Futures market:

The most-traded SHFE nickel 2610 contract edged down in the morning session, and as of the morning close it was quoted at 128,200 yuan/mt, down 0.47%.

In the short term, the price trading range of the most-traded SHFE nickel contract is expected to be 127,000-132,000 yuan/mt.