[SMM Nickel Midday Commentary] On April 2, nickel prices fluctuated downward, and Trump unilaterally claimed an overwhelming victory in the war against Iran

SMM Nickel News, April 2:

Macro and market news:

(1) On the evening of April 1 local time, Trump delivered a speech, claiming on his own that the military campaign against Iran had achieved a “rapid, decisive, and overwhelming victory.” The US’ core strategic objectives in the military campaign against Iran were “close to completion.” Trump also said that stronger firepower strikes against Iran would be carried out in the coming weeks.

(2) US ADP employment increased by 62,000 in March, above market expectations of 40,000 and broadly flat from 63,000 in the previous month, indicating steady growth in US private-sector employment in March.

Spot market:

On April 2, the SMM price of #1 refined nickel fell by 1,650 yuan/mt from the previous trading day. In terms of spot premiums, Jinchuan #1 refined nickel averaged 3,650 yuan/mt, unchanged from the previous trading day; China’s mainstream electrodeposited nickel brands were at -600-400 yuan/mt.

Futures market:

The most-traded SHFE nickel contract (2605) fluctuated lower and closed the morning session at 133,870 yuan/mt today, down 0.87%.

In the short term, tighter Indonesian policies and cost support have built a solid bottom for nickel prices, but high inventory and weak end-use demand are capping upside room. The core trading range of the most-traded SHFE nickel contract is expected to be 133,000-143,000 yuan/mt.