SMM Nickel News on June 18:
Macro News:
(1) At the 2025 Lujiazui Forum, Pan Gongsheng, Governor of the People's Bank of China, announced eight major financial policies. First, establish a trade repository for the interbank market. Second, establish an international operation center for the digital yuan. Third, establish personal credit reporting agencies. Fourth, launch a comprehensive reform pilot for offshore trade financial services in the Lingang Special Area of Shanghai. Fifth, develop free trade offshore bonds. Sixth, optimize and upgrade the functions of free trade accounts. Seventh, innovate structural monetary policy tools in Shanghai on a "pilot first" basis. Eighth, collaborate with the China Securities Regulatory Commission to study and promote the trading of RMB foreign exchange futures.
(2) On Tuesday local time, the US Senate passed a bill to establish a regulatory framework for cryptocurrency tokens pegged to the US dollar, known as stablecoins. This marks a significant milestone for the cryptocurrency industry. The bill, known as the "Guiding Establishment of National Innovation for US Stablecoins Act" (GENIUS Act), received bipartisan support, with several Democrats joining the majority of Republicans in supporting the proposed federal regulations. The bill passed with 68 votes in favor and 30 against, marking the first time that significant cryptocurrency legislation has been passed in the Senate.
Spot Market:
Today, the SMM 1# refined nickel price is 118,500-121,150 yuan/mt, with an average price of 119,825 yuan/mt, unchanged from the previous trading day. The quotation range for spot premiums of Jinchuan #1 refined nickel is 2,500-2,700 yuan/mt, with an average premium of 2,600 yuan/mt, unchanged from the previous trading day. The quotation range for premiums and discounts of electrodeposited nickel from mainstream domestic brands is 0-400 yuan/mt.
Futures Market:
The most-traded SHFE nickel contract (NI2507) opened lower and continued to decline today, reaching a low of 118,050 yuan/mt. As of 11:30, SHFE nickel closed at 118,390 yuan/mt, down 590 yuan/mt or 0.50% from the previous trading day.
In the short term, nickel prices are expected to fluctuate rangebound within the 118,000-123,000 yuan/mt range. If Indonesia tightens its nickel ore policies, it may trigger a phased rebound. However, in the medium and long term, the pressure of supply surplus is difficult to alleviate, coupled with a lack of incremental demand, limiting the upside room for nickel prices.
