[SMM Nickel Midday Review] On April 29, nickel prices surged significantly as the US prohibited domestic individuals or entities from paying Strait of Hormuz transit fees to Iran

SMM Nickel News, April 29:

Macro and Market News:

(1) The US prohibited domestic individuals or entities from paying Strait of Hormuz transit fees to Iran, and non-US individuals or entities paying Strait of Hormuz safe passage fees to Iran would also face significant sanctions risks.

(2) The Tariff Commission of the State Council issued an announcement that from May 1, 2026 to April 30, 2028, zero tariffs in the form of preferential tax rates will be applied to 20 African countries that have established diplomatic relations with China and are not classified as least developed countries.

Spot Market:

On April 29, SMM #1 refined nickel prices rose 3,350 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,300 yuan/mt, down 50 yuan/mt from the previous trading day; mainstream domestic electrodeposited nickel brands ranged from -800 to 0 yuan/mt.

Futures Market:

The most-traded SHFE nickel 2606 contract surged in the morning session before pulling back slightly, closing at 150,810 yuan/mt in the morning session, up 1.37%.

Indonesia's tightening quota policies continued to strengthen, the sulfur supply crisis intensified, MHP production was hampered, and sulfur prices continued to rise amid tight supply, providing strong cost support. Combined with recent news of production halts and production cuts at Indonesian smelters, nickel prices held up well. The most-traded SHFE nickel contract price is expected to trade in the range of 140,000-150,000 yuan/mt.