[SMM Daily Review: Heavy back-and-forth negotiations between upstream and downstream in the nickel pig iron market, with transaction prices under pressure in the short term] On May 16, the average price of SMM 8-12% high-grade NPI was 941.5 yuan/mtu (ex-factory, tax included), unchanged from the previous working day...

According to SMM data, the mainstream premium for Indonesia's local laterite nickel ore remained at $26-30/wmt this week. Regarding the prices of ore used for pyrometallurgy, the HPM prices in Indonesia for H2 saw a rebound due to the increase in LME prices, leading to a slight increase in the prices of ore used for pyrometallurgy this week. The delivery-to-factory price for 1.6% nickel content of Indonesia's local laterite nickel ore from SMM was $53.3-57.3/wmt, up $0.7 or approximately 1.2% YoY from last week. In terms of the prices of ore used for hydrometallurgy, the delivery-to-factory price for 1.3% nickel content of Indonesia's local laterite nickel ore from SMM remained stable at $23-25/wmt, unchanged from last week.

Philippine nickel ore market remains generally stable, with a slight decline in CIF prices for medium-grade ore Indonesian ore HPM rises, but the premium for ore used for pyrometallurgy struggles to increase due to fundamental constraints

As of now, the MHP coefficient (relative to the SMM battery-grade nickel sulphate index) stands at 84%-85%, and the FOB price of Indonesian MHP is $12,795 per mt (Ni contained).

On May 16, the SMM index price for battery-grade nickel sulphate was 27,752 yuan/mt, with the quotation range for battery-grade nickel sulphate at 27,760-28,230 yuan/mt. The average price remained stable compared to yesterday.

[Summary of Morning Meeting on May 16] Consensus was reached on tariff issues during the China-US economic and trade talks, easing trade tensions. Currently, nickel ore prices remain high, and the shortage of supply in mining areas persists, driving up costs across the nickel industry chain. However, under the supply surplus situation, the cost transmission is hindered, and nickel prices may remain in the doldrums, with a support level at 122,000 yuan/mt and a resistance level at 128,000 yuan/mt. Going forward, attention should be paid to policy adjustments in Indonesia and changes in nickel ore supply after the end of the rainy season in the Philippines.

Philippine nickel ore prices are under pressure due to downstream constraints, with a divergence in prices between Indonesia's local ore for pyrometallurgy and ore used for hydrometallurgy