Due to disruptions from US aluminum tariffs, imports have been hindered and domestic supply is tight, prompting the company to shift from long-term contracts to spot purchasing. Arconic, a major US aluminum producer specializing in aluminum semis for aerospace, automotive, and construction sectors, has a procurement volume of approximately 40,800 mt of aluminum ingots (90 million pounds), which is scheduled for delivery in Q2.

[6.18 Morning Meeting Minutes] Recently, the premium for saprolite ore in Indonesia's nickel ore market remained high, and the cost line of nickel ore for smelters remained firm. Additionally, the drive to switch production to high-grade nickel matte was not met. Currently, the main product of RKEF capacity is still high-grade NPI, and overall production may increase MoM from last month. Demand side, the proportion of long-term agreements for raw materials among major stainless steel mills is relatively high, and there has been a considerable trading volume of spot orders on the eve of this month. Currently, the demand for external purchases is weak.

SMM Nickel News on June 17: Macro News: (1) Tariffs - ① Trump announced that the UK and the US had signed a trade agreement, and Lutnick would decide on the exemption quotas for steel and aluminum tariffs. ② Reports stated that the EU was prepared to conditionally accept a uniform 10% tariff imposed by the US, with the EU calling the claim speculative. ③ India and the US planned to sign an interim agreement by July 9. ④ During the G7 Summit, the leaders of Japan and the US held a brief meeting, with the progress of trade negotiations remaining unclear. ⑤ Trump stated that the US-Canada agreement must include tariffs, while Canada expressed that export tariffs on Canadian goods should be eliminated. (2) On Monday, Eastern Time, US President Trump and UK Prime Minister Starmer jointly announced that they had finalized the general terms of the trade agreement reached last month. The agreement covers trade terms for steel, ethanol, automobiles, and beef. The US plans to set a quota of 100,000 units per year for British automobile imports, with a tariff rate of 10%. The UK has committed to expanding market access for US beef, ethanol, grains, and some industrial products. Spot Market: Today, the SMM 1# refined nickel price is 118,500-121,150 yuan/mt, with an average price of 119,825 yuan/mt, a decrease of 900 yuan/mt from the previous trading day. The quotation range for spot premiums of Jinchuan #1 refined nickel is 2,500-2,700 yuan/mt, with an average premium of 2,600 yuan/mt, a slight increase of 100 yuan/mt from the previous trading day. The quotation range for spot premiums and discounts of electrodeposited nickel from mainstream domestic brands is 0-400 yuan/mt. Futures Market: Affected by the volatile external macro environment, nickel prices accelerated their decline. The most-traded SHFE nickel contract (NI2507) moved downwards after a higher opening and remained in the doldrums: it opened at 119,740 yuan/mt, up slightly by 70 yuan/mt, but quickly fell during the session, reaching a low of 118,150 yuan/mt. As of 11:30, SHFE nickel closed at 118,520 yuan/mt, down 1,150 yuan/mt or 0.96% from the previous trading day. LME nickel was also under pressure, temporarily quoted at $15,000/mt. In the short term, nickel prices are expected to fluctuate rangebound between 118,000-123,000 yuan/mt. If Indonesia tightens its nickel ore policies, it may trigger a phased rebound. However, in the medium and long term, the pressure from supply surplus is difficult to resolve, coupled with a lack of incremental demand, limiting the upside room for nickel prices.

[SMM Magnesium News] Trump's new 50% steel/aluminum tariffs batter US manufacturers. Minnesota metal plants report slumping orders as aerospace/auto clients delay redesigns. Twin Cities Die Castings cites supply cost surges and flat sales, while drill bit maker Minnesota Twist Drill calls tariffs "complete havoc" for operations.

Tariffs - ① Trump announced that the UK and the US had signed a trade agreement, and Lutnick would determine the exemption quotas for steel and aluminum tariffs. ② Reports claimed that the EU was prepared to conditionally accept a uniform 10% tariff imposed by the US, with the EU stating that such claims were speculative. ③ India and the US planned to sign an interim agreement before July 9. ④ The leaders of Japan and the US held a brief meeting during the G7 Summit, with the progress of trade negotiations remaining unclear. ⑤ Trump stated that the US-Canada agreement must include tariffs, while Canada expressed that tariffs on Canadian exports should be eliminated.

Overnight, LME copper opened at $9,678.5/mt, touching a low of $9,664/mt shortly after the opening bell.