[SMM Nickel Midday Review] Nickel prices fell sharply on May 28, as SAMR deployed local authorities to launch special campaigns against "involution-style" competition

SMM Nickel News, May 28:

Macro and market news:

(1) On May 27 local time, Boroujerdi, a member of Iran's National Security Council, stated that according to the preliminary agreement draft reached between Iran and the US, the US will commit in the first phase to a comprehensive 60-day ceasefire on all fronts, particularly within Lebanon.

(2) China's State Administration for Market Regulation deployed local market regulatory departments to carry out a special campaign on credit empowerment to address involution-style competition, May-December.

Spot market:

On May 28, SMM #1 refined nickel prices fell 2,250 yuan/mt from the previous trading day. In terms of spot premiums, Jinchuan #1 refined nickel averaged 750 yuan/mt, down 350 yuan/mt from the previous trading day, while premiums for mainstream domestic electrodeposited nickel brands ranged from -1,000 to 100 yuan/mt.

Futures market:

The most-traded SHFE nickel 2607 contract saw prices plunge lower in the morning session, closing at 143,020 yuan/mt, down 0.92%.

The current Middle East situation alternated between "ceasefire agreement — violation of agreement — peace talk expectations," intensifying nickel price fluctuations. Nickel prices are currently supported by cost floors below and suppressed by inventory buildup above. The most-traded SHFE nickel contract is expected to trade within the range of 137,000-145,000 yuan/mt in the short term.