Nickel Prices Pulled Back After Early Morning Gains [SMM Nickel Spot Cargo Midday Review]

SMM March 21 News: Spot Premiums/Discounts: The mainstream spot premiums for Jinchuan No.1 nickel were in the quotation range of 1,800-2,100 yuan/mt, with an average premium of 1,950 yuan/mt, up 100 yuan/mt from the previous trading day. The premiums and discounts for Russian nickel ranged from -200 to 100 yuan/mt, with an average discount of -50 yuan/mt, unchanged from the previous trading day. Futures: Nickel prices showed a fluctuating trend at the opening today. By 11:30, the closing price was 129,150 yuan/mt, down 0.32% from the previous trading day's settlement price, hitting a low of 129,100 yuan/mt. In terms of spot premiums and discounts, the Jinchuan brand nickel increased by 100 yuan compared to the previous trading day. This was mainly due to the recent large fluctuations in nickel prices, leading traders to raise premiums appropriately to seek reasonable profits. From a technical perspective, SHFE nickel futures contracts initially rose after the opening but then pulled back, indicating that market sentiment had eased somewhat following Indonesia's policy changes from initial quota reduction plans to the latest tax policy adjustments. Weak fundamentals began to suppress the nickel price rebound. Close attention should be paid to the actual implementation of the tax policy, which may push up costs on the cost side, thereby driving nickel prices higher. Regarding the price spread with nickel sulphate: Today, the SMM No.1 refined nickel price was 129,200-132,000 yuan/mt, with an average price of 130,600 yuan/mt, up 1,200 yuan/mt from the previous trading day's spot price. The price spread was 2,872 yuan/mt (Ni contained), with nickel sulphate still at a discount to refined nickel.