[SMM Nickel Midday Review] On August 3, nickel prices fell sharply, and on Monday afternoon, the US and Iran began negotiations.

Published: Aug 3, 2026 11:43

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SMM Nickel, August 3 News:

Macro and Market News:

(1) Trump stated that there is already an agreement on the Strait of Hormuz, and an agreement on denuclearization will also be reached, with negotiations scheduled to begin on Monday afternoon; Iranian Foreign Ministry spokesperson Baqaei stated that the situation in the Strait of Hormuz will not return to its pre-conflict state, and the new shipping route agreed upon with Oman will be determined through bilateral negotiations.

(2) The People’s Bank of China held a work conference for H2 2026 on August 1, emphasizing continued implementation of an appropriately accommodative monetary policy.

Spot Market:

On August 3, the average price of SMM #1 refined nickel was 131,400 yuan/mt, down 1,200 yuan/mt from the previous trading day. As for spot premiums, the average premium for Jinchuan #1 refined nickel was 1,150 yuan/mt, down 50 yuan/mt from the previous trading day, and the premium/discount range for mainstream domestic electrodeposited nickel was -300 to 500 yuan/mt.

Futures Market:

The most-traded SHFE nickel 2609 contract plunged sharply in early trading, falling below 130,000 yuan/mt, and closed the morning session at 129,520 yuan/mt, down 1.91%.

With the start of US-Iran negotiations and expectations that the Strait of Hormuz will resume navigation, sulfur cost support is weakening, causing nickel prices to fall 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.

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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