[SMM Nickel Midday Review] On June 23, nickel prices dropped sharply, and the US dollar index broke through the 100 mark.

SMM Nickel Report, June 23:

Macro and Market News:

(1) Ministry of Finance: In January–May, national general public budget revenue reached 10,046.5 billion yuan, up 4% YoY; securities transaction stamp tax revenue was 126.2 billion yuan, up 88.8% YoY.

(2) UK Prime Minister Starmer announced his resignation, stating that he will offer unreserved support to his successor. The new leader will take office in September.

Spot Market:

On June 23, SMM #1 refined nickel price rose 350 yuan/mt from the previous trading day. In terms of spot premiums, Jinchuan #1 refined nickel averaged 1,350 yuan/mt, down 50 yuan/mt from the previous trading day, and domestic mainstream brands of electrodeposited nickel ranged from -600 to 400 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2607) opened lower and declined in the morning session, closing the morning session at 133,690 yuan/mt, down 0.72%.

The US Fed's hawkish signals raised rate hike expectations, the US dollar index broke through the 100 mark, and the nonferrous metals sector came under systemic pressure. US-Iran negotiations remain volatile; while expectations for the opening of the Strait of Hormuz persist, uncertainty is high. In the short term, nickel prices are expected to remain in the doldrums, fluctuating in the 133,000–140,000 yuan/mt range.