June nickel prices fell amid stronger USD and eased supply worries. LME Ni ( 📉 -3.16%) dropped more sharply than SHFE Ni ( 📉 -2.68%), while DXY rose 📈 1.13% month-on-month.
4 Key Drivers
1️Firmer USD Pressures Metals: Hawkish Fed outlook lifted DXY, suppressing valuation of dollar-denominated nickel and cooling risk assets.
2️LME Ni: Looser Supply Expectations Weigh: Rumors of higher Indonesian nickel quotas and new smelter output eased supply tightness; overseas stainless steel orders saw no new growth. Fading geopolitical safe-haven demand accelerated price declines.
3️SHFE Ni: Off-Season Demand Drags: Long-term Indonesian export limits still offered cost support, yet domestic stainless steel entered summer off-season; downstream buyers only bought minimal rigid demand with no bulk restocking. Weak domestic consumption, RMB depreciation and arbitrage outflows widened onshore-offshore spreads.
4️Hawkish Fed Lifts DXY: Stubborn US core inflation and hawkish Fed dot plot erased 2026 rate-cut hopes; falling global risk appetite attracted safe-haven capital into USD assets, creating sustained downward pressure on industrial metals.
