[SMM Nickel Midday Review] Nickel Prices Edged Down on April 13, U.S. Military to Block Any Ships Attempting to Enter or Exit the Strait of Hormuz

SMM Nickel News, April 13:

Macro and market news:

(1) Trump: A blockade will be imposed on all ships attempting to transit the Strait of Hormuz, ships paying transit fees to Iran in international waters will be intercepted, and Iranian mines laid in the strait will be cleared. Apart from the nuclear issue, the US and Iran have "reached agreement on most issues."

(2) According to US officials and informed sources, President Trump and his advisors are considering resuming limited military strikes against Iran while imposing a blockade on the Strait of Hormuz to break the deadlock in peace negotiations.

Spot market:

On April 13, SMM #1 refined nickel prices fell 400 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 3,350 yuan/mt, unchanged from the previous trading day; domestic mainstream brand electrodeposited nickel ranged from -400 to 400 yuan/mt.

Futures market:

The most-traded SHFE nickel 2605 contract moved sideways in the morning session, closing at 134,000 yuan/mt, up 0.43%.

The most-traded SHFE nickel contract is expected to continue fluctuating within the 130,000-138,000 yuan/mt range, supported below by cost underpinning from rising ore and sulfur prices, and capped above by high global inventory (LME inventory above 280,000 mt, continued social inventory buildup in China) and sluggish downstream demand recovery.