[SMM Nickel Midday Review] Nickel Prices Plunged on May 26 as Strait of Hormuz Set to Reopen

Published: May 26, 2026 11:35

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SMM Nickel News, May 26:

Macro and market news:

(1) A draft agreement between the US and Iran was reportedly reached, allowing free and open passage through the Strait of Hormuz and the clearing of mines; navigation through the Strait of Hormuz is to be restored within 30 days.

(2) Iran's Ministry of Foreign Affairs: No transit fees will be imposed on the Strait of Hormuz. Charging for services provided is normal, but it should not be regarded as a toll.

Spot market:

On May 26, SMM #1 refined nickel prices fell 2,600 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,100 yuan/mt, down 50 yuan/mt from the previous trading day, while mainstream domestic electrodeposited nickel brands ranged from -400-500 yuan/mt.

Futures market:

The most-traded SHFE nickel 2606 contract plunged sharply in the morning session, closing at 142,280 yuan/mt, down 1.08%.

The Strait of Hormuz is about to reopen, and the sulfur supply deficit is expected to ease. The fading of geopolitical risk premiums weakened the short-term cost-side support for nickel prices, leading to a sharp decline. Currently, global refined nickel visible inventory remains at elevated levels, and sluggish downstream consumption has slowed the destocking process. Nickel prices lack upward momentum, and the most-traded SHFE nickel contract is expected to trade in the range of 137,000-145,000 yuan/mt in the short term.

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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