[SMM Nickel Midday Review] Nickel Prices Staged a Strong Rebound on May 27, as Renewed U.S.-Iran Conflict Left Uncertainty over Navigation through the Strait of Hormuz

Published: May 27, 2026 11:57

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SMM Nickel News, May 27:

Macro and market news:

(1) Data from the NBS showed that from January to April, profits of above-designated-size raw material manufacturing industries were up 88.1% YoY, accelerating by 10.2 percentage points from January-March, boosting profits of all above-designated-size industrial enterprises by 10.3 percentage points.

(2) Iran: The US and European economies are highly dependent on energy prices and vulnerable to changes in regional situations. This pressure leverage puts the US in a "requesting" position when it comes to reaching a deal with Iran.

Spot market:

On May 27, SMM #1 refined nickel prices rose 3,100 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 1,100 yuan/mt, flat from the previous trading day, while premiums for mainstream domestic electrodeposited nickel brands ranged at -500-500 yuan/mt.

Futures market:

The most-traded SHFE nickel 2606 contract opened higher and continued to rise, rebounding notably from the previous day, closing at 144,690 yuan/mt in the morning session, up 1.91%.

Minor clashes between the US and Iran resumed, and uncertainties persist over the Strait of Hormuz, driving a rebound in nickel prices. The current Middle East situation alternates between "ceasefire agreements — violations — peace talk expectations," intensifying nickel price fluctuations. Nickel prices are currently supported by costs on the downside while capped by inventory buildup on the upside. The most-traded SHFE nickel contract is expected to trade within 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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