[SMM Nickel Midday Review] Nickel Prices Edged Down Slightly on March 11, Trump Said Negotiations with Iran May Be Possible Under Certain Conditions

SMM Nickel News, March 11:

Macro and Market News:

(1) After Iran had reportedly prepared to lay naval mines in the Strait of Hormuz, a vital chokepoint for global oil transport, US President Trump posted that if Iran deploys mines in the Strait of Hormuz, it must remove them immediately or face "unprecedented military consequences."

(2) Trump said it may be possible to negotiate with Iran under certain conditions. However, within Iran, the foreign minister said the new supreme leader would not negotiate with the US, while the vice president said Iran has not given up on resolving the issue through negotiations.

Spot Market:

On March 11, the SMM price of #1 refined nickel fell by 1,850 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, unchanged from the previous trading day; China mainstream brands of electrodeposited nickel were at -300-400 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2605) fluctuated lower in the morning session and closed the morning session at 136,870 yuan/mt, down 0.9%.

On the macro front, risk-aversion sentiment driven by geopolitical conflict in the Middle East showed signs of easing in the short term. Supply side, the core driver remained unchanged in Indonesia's tightening nickel ore supply policy. Short term, the price of the most-traded SHFE nickel contract is expected to maintain sideways movement in the 130,000-140,000 yuan/mt range.