[SMM Nickel Midday Review] Nickel Prices Saw a Slight Correction on April 28, Moody's Maintained China's Sovereign Credit Rating at "A1"

SMM Nickel News, April 28:

Macro and market news:

(1) On April 27, Moody's Investors Service released a report deciding to maintain China's sovereign credit rating at "A1" and upgraded the outlook to "stable." This rating reflects Moody's high recognition of the strong resilience demonstrated by China's macroeconomic and fiscal strength in the face of external shocks, as well as the new momentum and new progress in China's high-quality economic development.

(2) Iranian Foreign Minister: The US requested negotiations, and Iran is considering it. US media reported that Iran proposed a deal to the US to reopen the strait but postponed nuclear talks. Trump was skeptical of Iran's proposal but did not outright reject it.

Spot market:

On April 28, SMM #1 refined nickel prices fell 1,800 yuan/mt from the previous trading day. In terms of spot premiums, Jinchuan #1 refined nickel averaged 1,350 yuan/mt, unchanged from the previous trading day; premiums for mainstream domestic electrodeposited nickel brands ranged from -1,000 to 0 yuan/mt.

Futures market:

The most-traded SHFE nickel 2606 contract pulled back slightly during the session before rallying again, closing at 149,110 yuan/mt in the morning session, up 0.58%.

Indonesia's tightening quota policies continued to intensify, the sulfur supply crisis worsened, MHP production was hampered, and sulfur prices continued to rise amid tight supply, providing strong cost support. Combined with the recent fermentation of news about production halts and production cuts at Indonesian smelters, nickel prices held up well. The most-traded SHFE nickel contract is expected to trade in the range of 140,000-150,000 yuan/mt.