[SMM Nickel Midday Review] On June 5, nickel prices edged down, and Trump stated that we are in the final phase of negotiations to end the Iran war.

SMM Nickel, June 5:

Macro and Market News:

(1) PBOC announcement: To maintain ample liquidity in the banking system, on June 5, 2026, the People’s Bank of China will conduct a 500 billion yuan outright reverse repo operation via fixed quantity, interest rate tender, and multiple-price bidding, with a maturity of 3 months and a due date of September 5, 2026.

(2) Trump: We are in the final stage of negotiations to end the Iran war. If Iran kills U.S. troops, that would be sufficient reason to resume the conflict; Trump also told mediators that he refuses to release funds to Iran before a deal is signed.

Spot Market:

On June 5, SMM #1 refined nickel price fell by 1,850 yuan/mt from the previous trading day. In terms of spot premiums, the average for Jinchuan #1 refined nickel was 950 yuan/mt, up 150 yuan/mt from the previous trading day. The range for domestic mainstream electrodeposited nickel brands was -600 to 300 yuan/mt.

Futures Market:

The most-traded SHFE nickel 2607 contract fluctuated lower during the morning session, closing the morning session at 138,430 yuan/mt, down 1.68%.

In the short term, nickel prices are likely to remain supported by costs below and pressured by inventory buildup above. The reference range for the most-traded SHFE nickel contract is 138,000-148,000 yuan/mt.