[SMM Nickel Midday Review] Nickel Prices Edged Down on June 1, China's Manufacturing PMI Came in at 50.0% in May

SMM Nickel News, June 1:

Macro and market news:

(1) National Bureau of Statistics (NBS): The manufacturing PMI in May was 50.0%, down 0.3 percentage points from the previous month.

(2) Trump claimed the US and Iran reached agreement on nuclear issues and secondary matters beyond the Strait of Hormuz; however, according to US media reports, Trump tightened the terms of the deal with Iran, with revised proposals involving nuclear access and the Strait, extending the US-Iran negotiations by one week.

Spot market:

On June 1, SMM #1 refined nickel prices fell 200 yuan/mt from the previous trading day. Spot premiums: Jinchuan #1 refined nickel averaged 800 yuan/mt, up 100 yuan/mt 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 moved sideways during the morning session, closing at 142,980 yuan/mt, down 0.79%.

In the short term, nickel prices may 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 137,000-145,000 yuan/mt.