[SMM Nickel Midday Review] Nickel Prices Moved Sideways on June 17, US Fed Held FOMC Meeting on June 16-17

SMM nickel report on June 17:

Macro and market news:

(1) The US Fed held its FOMC meeting on June 16-17 and will announce its interest rate decision at 2:00 am tomorrow Beijing time. The market widely expects the rate to remain unchanged at 3.50%-3.75%.

(2) The 2026 Lujiazui Forum opens in Shanghai today. The two-day forum, themed "Financial Development and Cooperation under the Global Governance Initiative," is co-chaired by the head of the National Financial Regulatory Administration and the mayor of Shanghai. Over 70 Chinese and foreign guests are attending, and multiple financial opening-up policies are expected to be released.

Spot market:

On June 17, the SMM #1 refined nickel price rose by 300 yuan/mt from the previous trading day. In terms of spot premiums, the average premium for Jinchuan #1 refined nickel was 1,400 yuan/mt, down 100 yuan/mt from the previous trading day. The premium range for mainstream domestic electrodeposited nickel brands was -600 to 400 yuan/mt.

Futures market:

The most-traded SHFE nickel 2607 contract moved sideways in the morning session, closing the morning session at 135,460 yuan/mt, down 0.22%.

The US-Iran deal was reached, significantly easing geopolitical tensions in the Middle East. The tail risk of energy supply disruptions subsided, crude oil pulled back, dragging down global inflation expectations. Once shipping through the Strait of Hormuz resumes and the overseas sulfur supply crisis eases, nickel prices' cost support will weaken. Meanwhile, nickel prices remain capped by high inventory. In the short term, nickel prices are expected to trade in the range of 133,000-140,000 yuan/mt.