The London Metal Exchange (LME) nickel futures price on April 8 went up greatly by US$354/ton to US$17,302/ton. The spot price also soared by US$349/ton to US$17,103/ton. Besides, inventories monitored by the LME reduced by 138 tons, reaching 281,358 tons.
Nickel prices recently rebounded, supported by tight ore supply and a weaker US dollar, according to market participants. Indonesia’s nickel ore production quota was approved at only 190 to 200 million tons and is nearing its limit, indicating a tight supply on the mining side.
Meanwhile, a two-week ceasefire in the Middle-East conflict eased market risk aversion, leading to a weaker US dollar and supporting nickel prices. However, refined nickel inventories remain high, while nickel pig iron supply is ample. In addition, demand recovery in China’s stainless steel and new energy vehicle sectors was weaker than expected, and port nickel ore inventories were declining slowly. Market participants expect nickel prices to fluctuate in the short term.