[SMM Announcement] Request for Comments on the Optimization of SMM #1 Refined Nickel Price Assessment Methodology

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Survey Period for Methodology Optimization: June 25, 2025 - June 30, 2025
Person in Charge: Cong Wang, Disheng Feng, Yang Xu
Feedback E-mail: Cong Wang - wangcong@smm.cn; Disheng Feng - fengdisheng@smm.cn; Yang Xu - garyxu@smm.cn
Feedback Telephone: Cong Wang - 021-51666838; Disheng Feng - 021-51666714; Yang Xu - 021-51666760

1.Definitions
The SMM #1 refined nickel spot price is an indicative price generated and published by SMM based on the price assessment methodology, which can be adopted by both trading parties as a reference for the settlement of #1 refined nickel spot trade. This price reflects the indicative range of the most likely transaction price for self pick-up from warehouse spot trades at the time of the SMM #1 refined nickel spot price release for each complete working day. This price is based on the trading conditions in the Shanghai area, and other regions may adjust the actual settlement price during transactions according to the market correlation between different regions based on this price.

Specifications for refined nickel:
Standard product: #1 refined nickel, conforming to the national standard GB/T 6516-2010 Ni9996, with a total content of nickel and cobalt not less than 99.96%.

Currently, the circulating brands and producers for price collection of #1 refined nickel are:
Jinchuan Nickel - Jinchuan Group Co., Ltd.
Russian Nickel - Norilsk Nickel Co., Ltd.

2. Background Overview
The low-range price of SMM #1 refined nickel has long been calculated based on the premiums and discounts of Russian nickel (hereinafter referred to as "Russian nickel"). Since 2025, the spot circulation volume of Russian nickel has significantly contracted, and its premiums and discounts have risen compared to those of domestic mainstream brand refined nickel (produced via electrodeposition), deviating from the historical range. As the low-range price of SMM #1 refined nickel is still anchored to the premiums and discounts of Russian nickel, it has been passively elevated, failing to reflect the actual supply-demand relationship dominated by domestically produced refined nickel (produced via electrodeposition), thereby imposing certain pressure on spot market settlements.

Based on market changes and industrial demands, the SMM nickel team has conducted extensive surveys among upstream and downstream enterprises in the domestic nickel industry chain, as well as major traders. After exchanges and incorporating market feedback, the team initially believes that the following optimizations can be made to the "SMM #1 refined nickel" price:Price submitters will add four new brands to the existing circulating brands and producers of #1 refined nickel: Jinchuan #1 electrodeposited nickel, Huayou, CNGR, and GEM.

After the addition, the circulating brands and producers of #1 refined nickel for price collection will be as follows:
Jinchuan #1 refined nickel - Jinchuan Group Co., Ltd.
Jinchuan #1 electrodeposited nickel - Jinchuan Group Co., Ltd.
Russian nickel - Norilsk Nickel Co., Ltd.
Huayou nickel - Zhejiang Huayou Cobalt Co., Ltd.
CNGR nickel - CNGR Advanced Material Co., Ltd.
GEM nickel - GEM Co., Ltd.

The proposed launch date for the SMM #1 refined nickel price after adding new price submitters is July 1, 2025. The price release time will remain from 10:15 to 10:30 AM Beijing time on each trading day.

To solicit genuine suggestions and feedback on the market price of refined nickel, please write down your replies, preferably via email, and indicate whether your reply can be made public. Comments that require confidentiality may be used as references but will not be attributed.

This consultation project commenced on June 25, 2025, and will conclude on June 30, 2025. Based on the consultation results, SMM will optimize the price assessment methodology for "SMM #1 refined nickel" and announce the latest methodology.

Thank you again for your support and recognition of SMM!

SMM Nickel Commodity Research Team
June 25, 2025