SMM Nickel Jun 15 News: Macro and Market News: (1) As the Iran war neared the four-month mark, US-Iran peace talks achieved a breakthrough. The US, Iran, and key mediator Pakistan all indicated that an agreement had been reached and would be formally signed in Switzerland this Friday. (2) The People's Bank of China announced that on the 15th, it would conduct a 600 billion yuan outright reverse repo operation with a 6-month (183-day) tenor, using a fixed quantity, rate tender, and multiple-price auction method. Given that 600 billion yuan of this tenor matured during the month, this 6-month outright reverse repo operation was a full rollover. Spot Market: On Jun 15, SMM #1 refined nickel prices rose by 500 yuan/mt from the previous trading day. For spot premiums, Jinchuan #1 refined nickel averaged 1,650 yuan/mt, down 100 yuan/mt from the previous trading day, while the mainstream domestic electrodeposited nickel range was -500-400 yuan/mt. Futures Market: The most-traded SHFE nickel 2607 contract strengthened throughout the morning session, closing the morning at 136,120 yuan/mt, up 1.27%. The US and Iran reached a memorandum of understanding in Islamabad, extending the US-Iran ceasefire by 60 days. The Strait of Hormuz is about to reopen, and both sides have declared an end to hostilities and will formally sign the agreement this Friday. The recovering macro sentiment supported a collective rebound in non-ferrous metals prices; however, the extent of the nickel price rebound remained capped by inventory, with nickel prices expected to range between 133,000-140,000 yuan/mt.

[SMM Zinc Morning Comment: LME Boosted SHFE Trends, SHFE Zinc Rose in Night Session] Last Friday, the most-traded SHFE zinc 2608 contract opened at 24,500 yuan/mt. After the opening, SHFE zinc hovered at highs. At the beginning of the session, it dipped to a low of 24,490 yuan/mt, then touched a high of 24,690 yuan/mt during the session, and finally closed up at 24,670 yuan/mt, up 275 yuan/mt..

SMM, June 10: The most-traded SHFE lead 2607 contract opened at 16,090 yuan/mt on the day. In early trading, SHFE lead prices moved sideways within 16,055-16,095 yuan/mt, dipping to a low of 16,055 yuan/mt. The price then fluctuated higher from mid-session to the close, ending at 16,130 yuan/mt, forming a bearish candlestick, down 40 yuan/mt, or 0.25%. Secondary lead smelters, weighed down by losses, chose to hold prices firm and delay shipments, while the cost of scrap battery raw materials provided bottom-level cost support. Overall end-use market consumption was sluggish; the recovery in consumption during the traditional peak season fell short of market expectations, and downstream enterprises took a conservative approach to procurement and stockpiling. With the Dragon Boat Festival holiday approaching, lead ingot procurement demand from battery plants remained sluggish, the pace of lead ingot inventory destocking was slow, inventory levels tended to stabilize, and the likelihood of inventory shifting into accumulation later on increased. Lead prices are expected to remain in the doldrums. Data source statement: Except for publicly available information, other data are based on public information, market communication, and SMM’s internal database models, and are processed by SMM. They are for reference only and do not constitute decision-making advice.

[Weakening Consumption, Declining Operating Rates of Galvanising Producers]: The operating rate of the galvanizing industry was 59.82% this week, down 0.37 percentage points WoW. Raw material side, zinc prices fluctuated at highs this week. Downstream buyers restocked on dips for rigid demand only, without large-scale stockpiling. Zinc ingot inventory of galvanising enterprises edged up.

[SMM Zinc Morning Comment: LME Decline Drags Down SHFE, SHFE Zinc Center Shifts Lower] Overnight, the most-traded SHFE zinc 2607 contract opened at 24,755 yuan/mt. After the opening, SHFE zinc fluctuated below the daily average line, touching a high of 24,785 yuan/mt early in the session and a low of 24,610 yuan/mt during the session, ultimately closing down at 24,665 yuan/mt, falling 140 yuan/mt.

On May 18, 2026, iron ore futures trended weaker today. The most-traded contract I2609 closed at 803 yuan/mt, down 1.11% from the previous trading session. Port spot prices were 2-4 yuan higher than the previous day. Traders showed moderate enthusiasm in offering quotes; steel mill purchases were mostly driven by rigid demand; overall spot trading sentiment was lukewarm. Last week, SMM global iron ore shipments totaled 30.922 million mt, up 5.48% WoW. Among them, Australian shipments were basically stable, while Brazil's shipments rebounded significantly. In addition, last week, total iron ore arrivals at Chinese ports reached 25.9288 million mt, up 5% WoW and up 6.28% YoY on a cumulative basis. Iron ore fundamentals continued last week's pattern. Supply side, as mainstream mines accelerated shipments in Q2, there were signs of entering a loosening channel again. However, demand side, blast furnace operating rates remained at relatively high levels, ensuring rigid demand for iron ore. Therefore, iron ore's upside was relatively limited, but price support remained generally solid. On the macro front, coking coal and coke prices fell on futures due to policy shifts, dragging overall ferrous metals prices weaker. However, given that iron ore's own fundamental price support remained relatively firm, ore prices are expected to resume fluctuating at highs after a brief pullback this week. [SMM Steel]