[SMM Nickel Midday Review] Nickel Prices Fluctuated Upward on April 22 as Trump Announced Extension of Ceasefire Deadline

SMM Nickel News, April 22:

Macro and market news:

(1) Trump announced on local time Tuesday an extension of the ceasefire deadline, maintaining the naval blockade and awaiting Iran's submission of a unified negotiation proposal.

(2) Fed Chairman nominee Warsh: The US Fed needs to develop a new framework to address inflation.

Spot market:

On April 22, SMM #1 refined nickel prices rose 750 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,950 yuan/mt, flat from the previous trading day; mainstream domestic electrodeposited nickel brands ranged from -500-600 yuan/mt.

Futures market:

The most-traded SHFE nickel 2606 contract fluctuated higher in the morning session, closing at 142,340 yuan/mt, up 0.81%.

The positive impact of Indonesia's nickel ore HPM new policy was phased in and digested, with funds taking profits, nickel prices faced pullback pressure. However, the medium-term support logic for nickel prices remained solid. Going forward, attention should be paid to changes in actual transaction prices of Indonesian nickel ore and the impact of US-Iran conflict geopolitical tensions on sulfur supply. The most-traded SHFE nickel contract price is expected to trade in the range of 140,000-150,000 yuan/mt.