SMM Nickel News on September 22:
Macro and Market News:
(1) The Indonesian Ministry of Energy and Mineral Resources, through the Directorate General of Minerals and Coal, issued a letter numbered 1533/MB.07/DJB.T/2025, imposing administrative penalties on 190 mining companies that failed to pay reclamation guarantees, ordering them to temporarily halt operations. The decision was signed by the Director General of Minerals and Coal, Tri Winarno. This penalty is a follow-up measure after three previous administrative warnings. The suspension period can last up to 60 days, and if the enterprises can submit and obtain approval for their reclamation plan documents and pay the reclamation guarantee for 2025, the penalty can be lifted. Tri Winarno emphasized that if the enterprises still fail to fulfill their obligations within the stipulated time, their mining licenses may be permanently revoked.
(2) On the evening of September 19, President Xi Jinping had a telephone conversation with US President Trump, exchanging candid and in-depth views on the current Sino-US relations and issues of mutual concern, providing strategic guidance for the stable development of Sino-US relations in the next phase. The call was pragmatic, positive, and constructive.
Spot Market:
On September 22, the SMM #1 refined nickel price was 121,300-124,100 yuan/mt, with an average price of 122,700 yuan/mt, down 50 yuan/mt from the previous trading day. The mainstream spot premiums for Jinchuan #1 refined nickel were quoted at 2,300-2,400 yuan/mt, with an average premium of 2,350 yuan/mt, unchanged from the previous trading day. The quotation range for domestic mainstream brands of electrodeposited nickel spot premiums and discounts was -100-200 yuan/mt.
Futures Market:
The most-traded SHFE nickel 2510 contract closed at 121,300 yuan/mt during the night session, down 20 yuan/mt (a decrease of 0.02%). In the morning session, SHFE nickel surged before pulling back, closing at 121,280 yuan/mt by midday, a decrease of 0.03%.
The Indonesian Ministry of Energy and Mineral Resources imposed administrative penalties on 190 mining companies that failed to pay reclamation guarantees, ordering them to temporarily halt operations, leaving uncertainties in the mine supply. The US Fed's 25BP interest rate cut in September met market expectations, with macro-level bullish factors now largely exhausted. The dot plot indicates that there could be two more interest rate cuts this year, and one more in 2026. Nickel prices are expected to remain volatile in the short term, with the most-traded SHFE nickel reference range at 120,000-124,000 yuan/mt.
