[SMM Nickel Midday Review] Nickel Prices Pull Back Sharply on June 24, Oman Coordinates with International Maritime Organization to Open Temporary Shipping Lane in Strait of Hormuz

SMM Nickel, June 24:

Macro and market news:

(1) Oman has coordinated with the International Maritime Organization to open a temporary shipping lane in the Strait of Hormuz. According to the arrangement, the relevant lane will operate based on the navigation coordinates published by the IMO and the competent Omani authorities. Ships planning to use the lane need to coordinate with the IMO in advance.

(2) The US Senate has passed the war powers resolution on Iran previously approved by the House of Representatives. This marks the first time such a resolution has been passed by both chambers of Congress. The resolution requires the president to end US military operations against Iran without a congressional declaration of war or authorization for the use of force.

Spot market:

On June 24, SMM #1 refined nickel prices fell by 2,150 yuan/mt from the previous trading day. In terms of spot premiums, Jinchuan #1 refined nickel averaged 1,400 yuan/mt, up 150 yuan/mt from the previous trading day, and mainstream domestic brand electrodeposited nickel ranged from -500 to 400 yuan/mt.

Futures market:

The most-traded SHFE nickel contract (2607) plunged during the night session, hovered at lows in the morning session, and ended the morning session at 131,590 yuan/mt, down 1.94%.

The US Fed's hawkish signals have raised expectations for interest rate hikes, and the US dollar index has broken through the 100 mark, putting the entire nonferrous metals sector under pressure. In the short term, nickel prices are expected to remain in the doldrums in the range of 130,000–138,000 yuan/mt.