[SMM Nickel Midday Review] Nickel prices experienced a significant correction on January 27, as Trump announced an increase in reciprocal tariffs on South Korea to 25%.

SMM Nickel January 27 News:

Macro and Market News:

(1) The People's Bank of China held the 2026 macro-prudential work conference: It conducted forward-looking assessments of systemic financial risk hazards, innovated and enriched the policy toolbox, and maintained the sound operation of financial markets and the overall stability of the financial system.

(2) Trump announced via a post that he would increase the reciprocal tariff rates on South Korean automobiles, timber, pharmaceuticals, and all other goods from 15% to 25%.

Spot Market:

On January 27, the SMM #1 refined nickel price was 144,100-152,100 yuan/mt, with an average price of 148,100 yuan/mt, down 5,700 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel was 6,500-7,000 yuan/mt, with an average premium of 6,750 yuan/mt, up 250 yuan/mt from the previous trading day. The spot premiums and discounts quotation range for mainstream domestic brands of electrodeposited nickel was -300-600 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2602) opened lower and trended downward in the morning session, remaining in the doldrums throughout the session. By the morning close, it was reported at 145,200 yuan/mt, a decrease of 2.48%.

The continued weakening of the US dollar index currently 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 Indonesia's Business Competition Supervisory Commission into logistics monopolies in the IMIP park have occurred. Nickel prices are more likely to rise than fall, with the price center maintaining at a relatively high level.