[SMM Nickel Midday Review] Nickel prices moved downwards after a higher opening on June 18, and the US Fed's June interest rate decision remained unchanged.

SMM Nickel June 18 News:

Macro and Market News:

(1) At 02:00 a.m. Beijing Time on Thursday, the US Fed unanimously decided to keep the benchmark interest rate target range at 3.50%-3.75%, marking the fourth consecutive hold.

(2) Iranian Foreign Ministry spokesperson Baghaei said that the text of the memorandum of understanding between Iran and the US has been finalized and signed by both sides.

Spot Market:

On June 18, SMM #1 refined nickel price rose 150 yuan/mt from the previous trading day. In terms of spot premiums, the average premium for Jinchuan #1 refined nickel stood at 1,400 yuan/mt, unchanged from the previous trading day, while the premium range for mainstream domestic electrodeposited nickel brands was -600 to 400 yuan/mt.

Futures Market:

The most-traded SHFE nickel 2607 contract fluctuated downward in the morning session, closing the morning session at 135,290 yuan/mt, down 0.38%.

The Fed’s June rate decision kept the federal funds rate at 3.50%-3.75%, but the dot plot showed half of the officials expect at least one rate hike this year; the dollar strengthened, weighing on the entire metals complex. The US-Iran agreement officially took effect, the Strait of Hormuz is about to reopen, and sulfur cost support for nickel prices weakened. In the short term, nickel prices are expected to trade in the range of 133,000-140,000 yuan/mt.