[SMM Nickel Midday Review] Nickel Prices Edged Up on June 2, Trump Made New Statement After Iran Halted Dialogue

SMM Nickel News, June 2:

Macro and market news:

(1) Iranian media reported that Iran halted negotiations with the US, threatened to block the Bab el-Mandeb Strait, and planned to fully blockade the Strait of Hormuz, targeting Israel's military operations in Lebanon.

(2) US President Trump said he expected to reach a deal with Iran "within the next week" to extend the current ceasefire arrangement and reopen the Strait of Hormuz.

Spot market:

On June 2, SMM #1 refined nickel prices rose 200 yuan/mt from the previous trading day. In terms of spot premiums, Jinchuan #1 refined nickel averaged 700 yuan/mt, unchanged from the previous trading day, while mainstream domestic electrodeposited nickel brands ranged from -700 to 300 yuan/mt.

Futures market:

The most-traded SHFE nickel 2607 contract rallied during the night session and rebounded after a dip in the morning session, closing at 144,090 yuan/mt in the morning session, up 0.61%.

In the short term, nickel prices are likely to remain supported by costs on the downside while capped by inventory buildup on the upside. The reference range for the most-traded SHFE nickel contract is 138,000-148,000 yuan/mt.