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 Daily Commentary: Silver Price Corrective Rebound, Spot Silver Transactions at Parity Await Guidance] SMM June 12 - The US-Iran tensions have eased, and silver prices rebounded slightly. Affected by the "rush to buy amid continuous price rise and hold back amid price downturn" mentality, transactions in the spot market were concentrated at parity. Going forward, attention needs to be paid to downstream purchase willingness.

[Aluminum Ingot Social Inventory Destocking Accelerates Significantly, Relative High Level Still Caps Aluminum Price Upside Room] On the fundamentals side, the supply gap outside China is expected to provide strong bottom support for aluminum prices, and expectations of rising energy costs also form a bullish driver. This Thursday, the destocking pace of China’s social inventory of aluminum ingots accelerated notably, effectively easing the earlier high inventory pressure. However, China’s high inventory pressure remains relatively prominent, which is expected to cap the upside room for domestic aluminum prices. In the short term, domestic aluminum prices are expected to mainly fluctuate and consolidate.

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.

[SMM Daily Review: Silver Prices Under Pressure with Center Shifting Downward, Month-End Spot Supply-Demand Both Weak] SMM reported on May 28 that, affected by the escalation of US-Iran tensions and the rise of the US dollar, silver prices came under pressure today. Meanwhile, at the month-end, the spot market was constrained by invoice limitations with fewer offers, presenting an overall pattern of weak supply and demand on both sides and sluggish trading.