[SMM Nickel Midday Review] Nickel prices rose slightly on June 3, with China's manufacturing PMI at 49.5% in May

SMM Nickel News on June 3:

Macro News:

(1) Tariffs - ① European and US trade officials will meet on Wednesday, with the EU reiterating warnings of tariff retaliation. ② Foreign media: Seeking to accelerate negotiations, Trump demands countries submit their "best offers" by Wednesday. ③ The Trump administration appeals the order from the Federal District Court for the District of Columbia ruling its tariff policy "unlawful." ④ Japanese Prime Minister: No intention to make concessions on US tariff issues.

(2) On May 31, the China Federation of Logistics and Purchasing (CFLP) and the Service Industry Survey Center of the National Bureau of Statistics (NBS) announced China's PMI for May. The manufacturing PMI for May was 49.5%, up 0.5 percentage points MoM.

Spot Market:

Today, the SMM 1# refined nickel price is 121,400-124,300 yuan/mt, with an average price of 122,850 yuan/mt, up 525 yuan/mt from the previous trading day. The mainstream spot premium quotation range for Jinchuan #1 refined nickel is 2,500-2,600 yuan/mt, with an average premium of 2,550 yuan/mt, down 50 yuan/mt from the previous trading day. The premiums and discounts quotation range for Russian nickel is 100-500 yuan/mt, with an average premium of 300 yuan/mt, up 50 yuan/mt from the previous trading day.

Futures Market:

The most-traded SHFE nickel contract (NI2507) opened higher this morning, regaining the 122,000 yuan/mt level during the session, mainly exhibiting a fluctuating trend. As of 11:30, the closing price was 121,380 yuan/mt, up 0.25%.

In the medium and long term, the global nickel overcapacity issue remains unresolved, with the nickel market under triple pressure of "high supply, weak demand, and tight funding." In the short term, the bottom of the fluctuating range is seen at 118,000 yuan/mt, with the top under pressure at 123,000 yuan/mt.