SMM Nickel News on June 13:
Macro News:
(1) Tariffs - ① Trump will sign key parts of the US-UK trade agreement within days. ② Canadian PM: Progress made in US-Canada trade talks. ③ Trump: Auto tariffs may rise in the near future. ④ US Department of Commerce announces new process for auto tariff credits and also announces tariff hikes on steel home appliances, including washing machines and refrigerators, starting from the 23rd.
(2) Affected by the sharp escalation of geopolitical tensions in the Middle East, US and Brent crude oil prices surged rapidly, with gains expanding to 4%. Spot gold broke through $3,410/oz, hitting a new high since May 8. Israel has closed its airspace until further notice. Iranian state television reports that Iran's air defense system is on full alert. According to CNN, Trump has convened a cabinet-level meeting. The US and Iran are scheduled to hold the sixth round of nuclear talks in Oman on Sunday.
Spot Market:
Today, the SMM 1# refined nickel price is 119,950-123,050 yuan/mt, with an average price of 121,500 yuan/mt, a decrease of 400 yuan/mt from the previous trading day. The quotation range for spot premiums of mainstream Jinchuan #1 refined nickel is 2,400-2,600 yuan/mt, with an average premium of 2,500 yuan/mt, an increase of 75 yuan/mt from the previous trading day. The quotation range for premiums and discounts of mainstream domestic electrodeposited nickel is 0-400 yuan/mt.
Futures Market:
The most-traded SHFE nickel contract (NI2507) fell below 120,000 yuan/mt again after a lower opening in the night session yesterday, dropping to a low of 119,700 yuan/mt. Prices rallied during the day session, returning above 120,000 yuan/mt. As of 11:30, SHFE nickel closed at 120,330 yuan/mt, a decrease of 140 yuan/mt from the previous trading day, or 0.12%.
Positive signals have been released from China-US economic and trade consultations. Expectations for US Fed interest rate cuts are diverging, but the weak demand situation is difficult to improve. The supply surplus continues to suppress the upside room for nickel prices. In the short term, nickel prices may fluctuate rangebound between 118,000-123,000 yuan/mt.
