Nickel Prices Strengthen, Overall Market Sentiment Turns Optimistic [SMM Nickel Spot Midday Review]

SMM March 6 News:

Spot Premiums/Discounts: The mainstream spot premiums for Jinchuan No.1 nickel were quoted in the range of 1,500-1,600 yuan/mt, with an average premium of 1,550 yuan/mt, down by 50 yuan/mt from the previous trading day. The premiums and discounts for Russian nickel were quoted in the range of -100 to 0 yuan/mt, with an average discount of -50 yuan/mt, unchanged from the previous trading day.

Futures: Nickel prices surged rapidly after the opening today, followed by a slight pullback and then strengthened again. As of the 11:30 closing price, it stood at 128,280 yuan/mt, up 0.05% from the previous trading day's settlement price, with a high of 128,530 yuan/mt.

Spot Premiums/Discounts: The premium for Jinchuan brand nickel dropped by 50 yuan compared to the previous trading day, mainly due to traders' eagerness to sell, leading to a decline in premium levels, reflecting the subtle changes in the supply-demand relationship in the market.

From a technical perspective and market sentiment, the SHFE nickel 2504 contract showed strong upward momentum at the opening. Although it experienced a slight pullback later, its subsequent strengthening demonstrated the overall optimistic sentiment in the market. This sentiment was closely related to the frequent introduction of Indonesian policies and the recent firmness in nickel ore transaction prices. Additionally, the Two Sessions also contributed to boosting market confidence to some extent. However, refined nickel inventory remained at a high level. In the short term, the tug-of-war between favourable macro factors and bearish fundamentals continues.

Regarding the Price Spread with Nickel Sulphate: Today's nickel briquette prices were 126,800-127,200 yuan/mt, with an average price of 127,000 yuan/mt, up by 300 yuan/mt from the previous day's spot price. Nickel sulphate remained at a discount to refined nickel.