[SMM Nickel Midday Review] On June 5, nickel prices were under pressure, with the US ISM non-manufacturing index for May falling to 49.9

SMM Nickel News on June 5:

Macro News:

(1) Tariffs - ① It is rumored that the US-Canada agreement may be reached next week. Canadian Prime Minister: If negotiations fail, Canada is prepared to take retaliatory measures against the US. ② EU trade official: Negotiations with the US are progressing steadily in the right direction. ③ UK Prime Minister: Very confident that US tariffs can be reduced in a very short time. ④ US Secretary of Commerce: Analysis and formulation of tariff standards for aircraft parts will be completed by month-end; will not mutually eliminate tariffs and barriers with Vietnam. ⑤ Mexico will announce measures to respond to US steel and aluminum tariffs next week.

(2) US economic data - ① ADP employment in May increased by 37,000, far below the expected 110,000 and the previous value of 62,000. ② The US ISM non-manufacturing index for May fell to 49.9, contracting for the first time in nearly a year, with expectations of an increase from 51.6 to 52.

Spot Market:

Today, the SMM 1# refined nickel price is 121,700-124,500 yuan/mt, with an average price of 123,100 yuan/mt, a decrease of 375 yuan/mt from the previous trading day. The quotation range for spot premiums of Jinchuan #1 refined nickel is 2,300-2,600 yuan/mt, with an average premium of 2,450 yuan/mt, a decrease of 50 yuan/mt from the previous trading day. The quotation range for premiums and discounts of Russian nickel is 100-600 yuan/mt, with an average premium of 350 yuan/mt, unchanged from the previous trading day. Trading in the spot market has been relatively sluggish recently.

Futures Market:

The most-traded SHFE nickel contract (NI2507) opened lower and weakened during the night session, fluctuating downward during the day session. As of 11:30, the closing price was 121,620 yuan/mt, down 0.38%.

In the medium and long term, the global nickel overcapacity issue remains unresolved, with the nickel market under triple pressure of "high supply, weak demand, and tight funds." In the short term, the bottom of the fluctuation range is seen at 118,000 yuan/mt, with the top under pressure at 123,000 yuan/mt.