[SMM Nickel Midday Review] Nickel prices plunged sharply on June 4 as Iranian media reported that the Strait of Hormuz management draft entered the review stage

Published: Jun 4, 2026 11:34

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SMM Nickel News, June 4:

Macro and market news:

(1) US President Trump said in an interview on June 3 local time that a deal with Iran is being reached. He also said Iran has agreed not to possess nuclear weapons and that he might meet with Iran's Supreme Leader at some point.

(2) Iran's Supreme Leader approved the establishment of a working group on the Strait of Hormuz issue. Iranian media reported that the Strait of Hormuz management draft has entered the review stage. An Iranian official said Iran would negotiate with the US if necessary.

Spot market:

On June 4, SMM #1 refined nickel prices fell 2,950 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 800 yuan/mt, up 100 yuan/mt from the previous trading day; domestic mainstream brand electrodeposited nickel ranged from -700-300 yuan/mt.

Futures market:

The most-traded SHFE nickel 2607 contract opened lower and continued to weaken during the session, once breaking below the 140,000 yuan/mt level. As of the morning close, it settled at 140,480 yuan/mt, down 2.55%.

In the short term, nickel prices may remain supported by costs on the downside while capped by inventory buildup on the upside. The reference range for the most-traded SHFE nickel contract is 138,000-148,000 yuan/mt.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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