SMM Nickel, June 5:
Macro and Market News:
(1) PBOC announcement: To maintain ample liquidity in the banking system, on June 5, 2026, the People’s Bank of China will conduct a 500 billion yuan outright reverse repo operation via fixed quantity, interest rate tender, and multiple-price bidding, with a maturity of 3 months and a due date of September 5, 2026.
(2) Trump: We are in the final stage of negotiations to end the Iran war. If Iran kills U.S. troops, that would be sufficient reason to resume the conflict; Trump also told mediators that he refuses to release funds to Iran before a deal is signed.
Spot Market:
On June 5, SMM #1 refined nickel price fell by 1,850 yuan/mt from the previous trading day. In terms of spot premiums, the average for Jinchuan #1 refined nickel was 950 yuan/mt, up 150 yuan/mt from the previous trading day. The range for domestic mainstream electrodeposited nickel brands was -600 to 300 yuan/mt.
Futures Market:
The most-traded SHFE nickel 2607 contract fluctuated lower during the morning session, closing the morning session at 138,430 yuan/mt, down 1.68%.
In the short term, nickel prices are likely to remain supported by costs below and pressured by inventory buildup above. The reference range for the most-traded SHFE nickel contract is 138,000-148,000 yuan/mt.
![[SMM Nickel Intermediate Product Daily Review] On June 5, nickel prices for MHP and high-grade nickel matte declined.](https://imgqn.smm.cn/usercenter/WNjzM20251217171732.jpeg)
![[SMM Nickel Sulphate Daily Commentary] June 5: Nickel prices slumped sharply, nickel salt prices declined.](https://imgqn.smm.cn/usercenter/JjbtE20251217171732.jpeg)
