[SMM Nickel Midday Review] On March 5, improving macro sentiment drove a rebound in nickel prices; the Government Work Report announced a 2026 economic growth target of 4.5%–5%

SMM Nickel News, March 5:

Macro and Market Updates:

(1) The Government Work Report stated that the main expected development targets for 2026 were: economic growth of 4.5%-5%, with efforts in actual work to achieve better results; a surveyed urban unemployment rate of around 5.5%, with more than 12 million new urban jobs; a CPI increase of around 2%; resident income growth in step with economic growth; a basically balanced balance of payments; grain production of around 1.4 trillion jin; and a reduction of around 3.8% in CO2 emissions per unit of GDP.

(2) In outlining the government’s tasks for 2026, the Government Work Report proposed strengthening anti-monopoly and anti-unfair competition efforts, reinforcing rigid constraints in fair competition reviews, and taking a comprehensive approach using measures such as capacity regulation, standards guidance, price enforcement, and quality supervision to thoroughly address “involution-style” competition and foster a sound market ecosystem. It also called for deepening pilot programs for comprehensive reforms in the market-oriented allocation of factors, and expanding the pilot scope to include more eligible regions.

Spot Market:

On March 5, SMM #1 refined nickel prices fell by 200 yuan/mt from the previous trading day. In terms of spot premiums, the average premium for Jinchuan #1 refined nickel was 6,650 yuan/mt, down 250 yuan/mt from the previous trading day; electrodeposited nickel from major domestic brands ranged from -300 to 400 yuan/mt.

Futures Market:

The most-traded SHFE nickel 2605 contract opened higher and then maintained a fluctuating trend, closing the morning session at 137,580 yuan/mt, up 0.65%.

With a notable recovery in macro sentiment today, nickel prices rebounded. In the short term, nickel prices are expected to fluctuate upward, and the most-traded SHFE nickel contract may trade in the range of 135,000-143,000 yuan/mt.