This week, the Co3O4 market maintained a stable trend, with overall activity still relatively weak. Quotations from top-tier enterprises remained at a high level of around 370,000 yuan/mt, while the tight inventory of cobalt intermediate products continued to provide cost support for prices. However, downstream LCO material plants did not accelerate their procurement pace, mostly conducting small-scale restocking based on orders on hand, and market inquiry sentiment improved slightly WoW. Going forward, the pace of end-use demand will become the key variable determining the procurement intensity of cathode materials. In the short term, the Co3O4 market will still mainly remain stable, awaiting further clarity on the demand side.

SMM Nickel News, March 26: Macro and Market News: (1) On March 25, COSCO SHIPPING Lines issued a service notice announcing the immediate resumption of new bookings for services from the Far East to the following Middle East countries (dry containers): the UAE, Saudi Arabia, Bahrain, Qatar, Kuwait, and Iraq. The resumption of shipments did not mean that COSCO SHIPPING container vessels could pass through the Strait of Hormuz. (2) In the early hours of March 25, Tehran time, Iran's Permanent Mission to the United Nations said in a statement on social media that non-hostile vessels could safely pass through the Strait of Hormuz in coordination with relevant Iranian authorities, provided that the countries to which they belong or with which they are associated neither participate in nor support acts of aggression against Iran, and fully comply with the announced safety and security regulations. Spot Market: On March 26, the SMM price of #1 refined nickel rose by 1,550 yuan/mt from the previous trading day. In terms of spot premiums, the average premium for Jinchuan #1 refined nickel was 5,400 yuan/mt, down 750 yuan/mt from the previous trading day; domestic mainstream electrodeposited nickel was at -400-400 yuan/mt. Futures Market: The most-traded SHFE nickel contract (2605) opened sharply higher in last night's session and then fluctuated downward, closing the morning session today at 135,250 yuan/mt, up 0.50%. Policy expectations that Indonesia may impose a nickel export tax, together with firm ore prices on the raw material side and easing macro sentiment, jointly drove nickel prices to rebound. Nickel prices are expected to hold up well in the short term, with the core trading range of the most-traded SHFE nickel contract at 133,000-143,000 yuan/mt.

On March 25, the SMM average price of battery-grade nickel sulphate remained stable.

This week, prices in the second-life battery market were generally stable, while the market's structural divergence remained evident. Cost side, trends in various raw materials diverged, with overall costs rising slightly. Lithium carbonate prices increased, pushing up battery cell recycling and processing costs; nickel sulphate and cobalt sulphate prices remained stable, easing one-sided cost pressure, and costs edged up mildly over the week. Supply side, supply of popular energy storage battery cell models was tight, with limited spot availability; conventional models were sufficiently available, and no broad-based shortage emerged in the market. Demand side, the gap between energy storage and the EV market remained wide. Demand in the EV sector stayed sluggish, with low purchasing enthusiasm and insufficient support for prices; energy storage demand remained the mainstay of the market, with stable rigid demand. However, prices were currently at high levels, downstream purchasing became more rational, willingness to purchase at high prices declined, and further price increases were currently facing resistance.

SMM Nickel News, March 24: Macro and Market News: (1) Iran’s Parliament Speaker Qalibaf denied having held talks with the US side and accused fake news of manipulating the financial and oil markets; Iran’s Islamic Revolutionary Guard Corps said it would launch new attacks on US targets and called Trump’s remarks “psychological warfare” (2) Israeli officials said Washington had set April 9 as the target date for ending the war. Talks between Iran and the US were expected to be held later this week in Pakistan, adding that Washington had not yet informed Israel of any contact with Iran’s Parliament Speaker Qalibaf. Spot Market: On March 24, the SMM price of #1 refined nickel fell 1,700 yuan/mt from the previous trading day. In spot premiums, Jinchuan #1 refined nickel averaged 6,250 yuan/mt, down 300 yuan/mt from the previous trading day; China’s mainstream brands of electrodeposited nickel were at -300-400 yuan/mt. Futures Market: After surging sharply in the night session, the most-traded SHFE nickel 2605 contract pulled back in the morning session, closing the morning session at 132,830 yuan/mt, up 0.69%. Current nickel prices were in a stage of intense tug-of-war between macro headwinds and supply risks. Short term, tighter Indonesian RKAB quotas, continued gains in ore prices, and the risk of sulfur supply disruptions provided solid support below, but high inventory and the slow recovery in end-use demand still capped upside room. The core trading range of the most-traded SHFE nickel contract was expected at 130,000-140,000 yuan/mt in the short term.

SMM Nickel News, March 23: Macro and market news: (1) Trump demanded that Iran reopen the Strait of Hormuz within 48 hours, or its power stations would be destroyed. Iran's Islamic Revolutionary Guard Corps responded that if Trump's threat to attack Iranian power stations were carried out, Iran would immediately take four measures, including fully closing the Strait of Hormuz. (2) Pan Gongsheng, Governor of the People's Bank of China, said at the China Development Forum 2026 Annual Conference on March 22 that China would continue to implement a moderately accommodative monetary policy. A range of monetary policy tools, including the reserve requirement ratio (RRR), policy interest rates, and open market operations, would be used in a comprehensive manner to maintain ample liquidity. Spot market: On March 23, the SMM price of #1 refined nickel fell by 50 yuan/mt from the previous trading day. Spot premiums, the average premium for Jinchuan #1 refined nickel was 6,550 yuan/mt, unchanged from the previous trading day; the mainstream China electrodeposited nickel brands were at -300-400 yuan/mt. Futures market: The most-traded SHFE nickel contract (2605) fluctuated at highs during the session and closed the morning session at 134,810 yuan/mt, up 1.28%. Nickel prices are currently in a phase of intense tug-of-war between macro headwinds and supply risks. Short term, tighter Indonesian RKAB quotas, continued increases in ore prices, and the risk of sulfur supply disruptions have formed a solid bottom, but high inventory and the slow recovery in end-use demand still capped upside room. The core trading range of the most-traded SHFE nickel contract is expected at 130,000-140,000 yuan/mt in the short term.