[SMM Nickel Midday Review] Nickel prices surged significantly again on February 25, breaking through 140,000 yuan/mt, and are expected to hold up well in the short term.

SMM Nickel February 25 News:

Macro and Market News:

(1) To maintain ample liquidity in the banking system, on February 25, 2026, the People's Bank of China conducted a 600 billion yuan Medium-term Lending Facility (MLF) operation via a fixed amount, interest rate tender, and multiple-price award method, with a maturity of one year.

(2) Iran Situation — ① The White House reiterated that Trump's primary choice is always diplomacy, but military force will be used if necessary. ② Iranian Foreign Minister: Hopes to reach a fair agreement with the US in the shortest possible time. ③ The US military deployed 11 F-22 fighter jets to Israel. ④ Iran conducted military exercises in its southern coastal region.

Spot Market:

On February 25, the SMM #1 refined nickel price ranged from 140,000 to 149,900 yuan/mt, with an average price of 144,950 yuan/mt, up 2,450 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 8,100-9,000 yuan/mt, with an average premium of 8,550 yuan/mt, down 350 yuan/mt from the previous trading day. The spot premium/discount quotation range for mainstream domestic brands of electrodeposited nickel was -400 to 600 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2605) surged sharply to 142,000 yuan/mt during the night session and continued to hover at highs during the morning session. By the morning close, it was quoted at 142,240 yuan/mt, up 2.41%.

Affected by frequent supply-side disruptions in Indonesia, nickel prices once again broke through the 140,000 yuan/mt level. In the short term, nickel prices are expected to hold up well.