[SMM Nickel Midday Review] Nickel prices rallied and rebounded on May 11; China's CPI rose 1.2% YoY in April

SMM Nickel News, May 11:

Macro and market news:

(1) Iran submitted its feedback on the US proposal to Pakistan. According to Iran's feedback, negotiations at this stage should focus on ending the war. The US called it "completely unacceptable."

(2) NBS: In April, CPI rose 1.2% YoY and PPI rose 2.8% YoY; consumer prices rose 1.2% YoY.

Spot market:

On May 11, SMM #1 refined nickel prices rose 1,800 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,200 yuan/mt, up 50 yuan/mt from the previous trading day; mainstream domestic electrodeposited nickel brands ranged from 800-300 yuan/mt.

Futures market:

The most-traded SHFE nickel 2606 contract rebounded during the morning session, closing at 148,320 yuan/mt, up 0.86%.

Although Iran and the US were previously close to reaching a framework agreement, negotiations ultimately failed to sign formal terms. If the geopolitical deadlock continues to escalate and sulfur supply constraints remain unresolved, nickel prices still have upside room. In the short term, the most-traded SHFE nickel contract is expected to trade in the range of 145,000-150,000 yuan/mt.