[SMM Nickel Midday Review] Nickel Prices Fluctuate Upward on January 22, US Trade Representative Hopes for Another Round of Talks with China

SMM Nickel January 22 News:

Macro and Market News:

(1) US Trade Representative Greer stated at Davos that the US hopes to engage in another round of potential trade negotiations with China. Foreign Ministry Spokesperson Guo Jiakun, presiding over the regular press conference yesterday, expressed that China and the US should jointly implement the important consensus reached by the two heads of state, injecting more stability and certainty into China-US economic and trade cooperation and the world economy.

(2) Chairman Lange of the European Parliament's International Trade Committee announced that the review of the EU-US trade agreement will be frozen indefinitely. Denmark has refused former President Trump's request to negotiate the acquisition of Greenland.

Spot Market:

On January 22, the SMM #1 refined nickel price ranged from 140,900 to 150,600 yuan/mt, with an average price of 145,750 yuan/mt, down 850 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 8,500-9,000 yuan/mt, with an average premium of 8,750 yuan/mt, down 250 yuan/mt from the previous trading day. The spot premium/discount quotation range for mainstream domestic brands of electrodeposited nickel was -200 to 600 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2602) pulled back in early trading and then fluctuated upward, closing at 142,500 yuan/mt, up 1.15%.

The nickel market remains in a fierce tug-of-war between "strong expectations for Indonesian policies" and the reality of "high inventory and weak demand." In the short term, as long as expectations for production cuts on the Indonesian supply side persist, nickel prices are likely to hover at highs.