[SMM Nickel Midday Review] Nickel prices plunged sharply on June 22 as U.S.-Iran negotiations broke down

SMM Nickel, June 22:

Macro and Market News:

(1) Last Sunday’s US-Iran-Switzerland talks lasted only 1.5 hours before being suspended — Trump threatened “heavier strikes” during the negotiations, the Iranian delegation walked out in protest, Iran has announced the closure of the Strait of Hormuz, the US has threatened to “take over the waterway,” and geopolitical risks in the Middle East have surged.

(2) On June 18, Pan Gongsheng, Governor of the People’s Bank of China, met with Purba Yudi Sadwa, Minister of Finance of Indonesia.

Spot Market:

On June 22, SMM #1 refined nickel prices fell by 2,350 yuan/mt from the previous trading day. In terms of spot premiums, the average premium for Jinchuan #1 refined nickel was 1,400 yuan/mt, flat from the previous trading day, and mainstream domestic brand electrodeposited nickel premiums ranged from -600 to 400 yuan/mt.

Futures Market:

The most-traded SHFE nickel contract (2607) opened sharply lower in the morning session and then rebounded strongly, closing the morning session at 135,110 yuan/mt, down 0.84%.

The sudden cancellation of US-Iran peace talks has heightened geopolitical uncertainty. LME nickel remained weak during the Dragon Boat Festival holiday, and SHFE nickel opened with a sharp plunge. In the short term, nickel prices are expected to trade in the doldrums in the range of 133,000-140,000 yuan/mt.