SMM nickel August 4 news: Macro and Market News: (1) Today, the People's Bank of China conducted a 500 billion yuan outright reverse repo operation with a fixed quantity, rate tender, and multiple-price bidding method, for a term of 3 months (92 days), maturing on November 5, 2026 (postponed in case of holidays). (2) Iranian Foreign Ministry spokesperson Baghaei said on the 4th that Iran is still in negotiations with Oman over the Strait of Hormuz, and the talks have made "positive progress" at both technical and political levels. Spot Market: On August 5, the average price of SMM #1 refined nickel was 130,650 yuan/mt, down 2,750 yuan/mt from the previous trading day. In terms of spot premiums, the average for Jinchuan #1 refined nickel was 1,150 yuan/mt, unchanged from the previous trading day, while mainstream domestic brands of electrodeposited nickel ranged from -200 to 400 yuan/mt. Futures Market: The most-traded SHFE nickel 2609 contract plunged in the night session and continued to decline in the morning session, closing the morning session at 130,810 yuan/mt, down 0.78%. Expectations for a potential reopening of the Strait of Hormuz following progress in US-Iran negotiations have led to a pullback in sulfur forward prices, with signs of easing on the cost side. Additionally, there are expectations of further relaxation in Indonesia's RKAB supplementary quotas. In the short term, the most-traded SHFE nickel contract is expected to trade in the range of 128,000-135,000 yuan/mt.

On August 5, the SMM average price of battery-grade nickel sulphate slightly decreased.

On August 5, the SMM #1 refined nickel average price was 130,650 yuan/mt, down 2,750 yuan/mt from the previous trading day. In terms of spot premiums, the Jinchuan #1 refined nickel average premium was 1,150 yuan/mt, flat from the previous trading day, while the premium range for mainstream China electrodeposited nickel brands was -200-400 yuan/mt.

High ore costs, tight spot availability and weak stainless demand pin China's benchmark NPI index inside a RMB 7/nickel-point range in July, before an Indonesian policy jolt lifts it to a monthly high of RMB 1,129.5.

As of now, the Indonesia MHP nickel FOB price stood at $15,348/mt Ni, and the Indonesia MHP cobalt FOB price was $49,311/mt Co. The MHP payables for SMM battery-grade nickel sulphate index were 85-86%, while the MHP cobalt element payable indicator for SMM refined cobalt (Rotterdam warehouse) was 92%. The Indonesia high-grade nickel matte FOB price was $15,731/mt Ni.

SMM Nickel News, August 4: Macro and Market News: (1) The US and Iran give conflicting accounts of negotiations: Trump insists talks with Iran are underway, divided into two phases—separate discussions on the Strait of Hormuz reopening and denuclearization—and claims the strait will reopen by August 4 at the latest; Iran denies talks with the US, stating it is only advancing related negotiations with Oman. (2) US Fed's Williams: Optimistic that inflationary pressures will gradually ease. The Fed will act to achieve price stability if inflation does not return to the 2% path as expected. Spot Market: On August 4, the average price of SMM #1 refined nickel was 133,400 yuan/mt, up 2,000 yuan/mt from the previous trading day. In terms of spot premiums, the average for Jinchuan #1 refined nickel was 1,150 yuan/mt, flat from the previous trading day, and the range for mainstream domestic brands of electrodeposited nickel was -300 to 400 yuan/mt. Futures Market: The most-traded SHFE nickel contract (2609) surged in early trading, closing the morning session at 132,650 yuan/mt, up 1.55%. Nickel prices rallied sharply today, driven by market rumors of quota tightening as the period enters a critical phase for approving Indonesia's supplementary RKAB nickel ore quotas. Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated on August 3 that the government will implement a "measured relaxation" of the RKAB, with additional quotas expected to be released gradually while maintaining the market supply-demand balance. The most-traded SHFE nickel contract is expected to trade in the 128,000-135,000 yuan/mt range in the near term.

On August 4, the SMM battery-grade nickel sulphate average price remained stable.

On August 4, the SMM #1 refined nickel average price was 133,400 yuan/mt, up 2,000 yuan/mt from the previous trading day. In spot premiums, Jinchuan #1 refined nickel averaged 1,150 yuan/mt, unchanged from the previous trading day, while the premium range for mainstream domestic electrodeposited nickel was -300 to 400 yuan/mt.

[SMM Cobalt & Lithium Morning Call: Raw Material Prices Diverge, Industry Demand Maintains Structural Support] This week, industry chain prices showed divergence. Lithium ore, lithium chemicals, nickel chemicals and cobalt products were overall under pressure. Downstream procurement remained focused on long-term contract cargo pick-ups and essential restocking, and the market still held expectations of increasing supply and price declines in the long term. Cathode material side, ternary system prices pulled back along with raw material costs, while LFP and iron phosphate strengthened slightly, supported by order growth and cost support. Anode and separator markets held stable overall, and electrolyte moved up, driven by rising additive and solvent prices. Demand from energy storage, commercial vehicles and markets outside China maintained good performance, supporting continued growth in the industry's production schedules, but recovery on the consumption side remained relatively slow.

[8.4 Morning Briefing] Trump stated that an agreement has been reached regarding the Strait of Hormuz, and an agreement on denuclearization will also be reached, with negotiations scheduled to begin on Monday afternoon; Iranian Foreign Ministry spokesman Baghaei stated that the situation in the Strait of Hormuz will not return to the pre-conflict state, and the new shipping lane agreed with Oman will be determined through mutual consultations. The most-traded SHFE nickel 2609 contract plunged below 130,000 yuan in the morning session, closing at 129,520 yuan/mt at the end of the morning session, down 1.91%. As U.S.-Iran negotiations begin, the Strait of Hormuz is expected to resume navigation, sulfur cost support has weakened, and nickel prices have fallen sharply. In the short term, the most-traded SHFE nickel contract is expected to trade in the range of 128,000-135,000 yuan/mt.