[SMM Nickel Morning Comment] August 21: Nickel prices fell, as the US imposed a new round of "the toughest ever" economic sanctions on Iran.

SMM Nickel News on August 21:

Macro and Market News:

(1) The Trump administration announced a new round of the "most severe" economic sanctions on Iran and threatened economic actions against any country that has commercial dealings with Iran.

(2) US Treasury Secretary Bessent said he is prepared to further expand the scope of repurchases of debt with higher financing costs, while the Trump administration will introduce a new fiscal measure to address borrowing costs that have reached multi-year highs.

Spot Market:

On August 21, the average price of SMM #1 refined nickel was 129,600 yuan/mt, down 650 yuan/mt from the previous trading day. In terms of spot premiums, the average for Jinchuan #1 refined nickel was 1,550 yuan/mt, flat from the previous trading day, and the range for mainstream domestic brands of electrodeposited nickel was -100 to 500 yuan/mt.

Futures Market:

The most-traded SHFE nickel 2609 contract plunged in the night session and rebounded slightly in the morning session, closing at 128,860 yuan/mt at the end of the morning session, down 0.67%.

Currently, the US is expanding the scale of Treasury bond repurchases, which is a positive macro environment for base metals. However, LME and China's inventories maintain an accumulation trend, with visible inventory at historically high levels. In the short term, the price range for the most-traded SHFE nickel contract is 125,000-130,000 yuan/mt.