[SMM Nickel Midday Review] Nickel Prices Edged Down on June 3 as Conflicts Reignited in the Gulf Region

SMM Nickel News, June 3:

Macro and market news:

(1) Conflict reignited in the Gulf region: the US military struck Iran's Qeshm Island and fired at oil tankers, with air defense alarms sounding in Kuwait and Bahrain.

(2) The General Office of the Shanghai Municipal People's Government issued the "Several Opinions on Deepening the Development of Shanghai as a Global Asset Management Center." The opinions stated that by 2030, Shanghai's asset management scale is targeted to reach 55 trillion yuan, accounting for one-third of the national total; the launch of LNG futures and options will be accelerated, and preparations for R&D of electricity futures and computing power futures will be made; the institutional opening-up of the gold market will be steadily expanded, and cooperation between Shanghai and Hong Kong gold markets will be supported.

Spot market:

On June 3, SMM #1 refined nickel prices fell 450 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 700 yuan/mt, down 100 yuan/mt from the previous trading day, while domestic mainstream brand electrodeposited nickel ranged from -700 to 300 yuan/mt.

Futures market:

The most-traded SHFE nickel 2607 contract fluctuated lower in the morning session, closing at 143,670 yuan/mt, up 0.64%.

In the short term, nickel prices are expected to 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.