[SMM Nickel Midday Review] On January 26, nickel prices once again broke through 150,000 yuan/mt, and US President Trump stated that he will visit China in April.

SMM Nickel Market Update on January 26:

Macro and Market News:

(1) On January 22 local time, US President Trump said on Air Force One that he is expected to visit China in April. At the regular press conference of the Chinese Ministry of Foreign Affairs held on January 23, Foreign Ministry Spokesperson Guo Jiakun stated that the stable development of China-US relations is in the common interests of the two peoples and meets the common expectations of the international community. Head-of-state diplomacy plays an irreplaceable leading role in China-US relations.

(2) During the early Asian trading session on Monday, January 26, a new record was set in the gold market: spot gold broke through the key $5,000/oz threshold for the first time.

Spot Market:

On January 26, the SMM #1 refined nickel price was 149,800-157,800 yuan/mt, with an average price of 153,800 yuan/mt, up 5,250 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 6,000-7,000 yuan/mt, with an average premium of 6,500 yuan/mt, down 1,750 yuan/mt from the previous trading day. The spot premium/discount quotation range for mainstream domestic brands of electrodeposited nickel was -300-600 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2602) opened sharply higher in the morning session, rising to a high of 152,300 yuan/mt, and closed the morning session at 149,540 yuan/mt, up 3.12%.

The continued weakening of the US dollar index provides macro sentiment support for nonferrous metal prices. Indonesia's plan to cut nickel ore RKAB quotas remains the core driver of nickel prices, and frequent supply disruptions such as the recent investigation by the Indonesian Business Competition Supervisory Commission into logistics monopolies in the IMIP park have made nickel prices more likely to rise than fall, with the price center maintaining at a relatively high level.