London Metal Exchange (LME) nickel futures rebounded last Friday (August 7), hiking back above US$17,000 to settle at US$17,004 per ton. This recovery was driven by a softer US dollar and tight supply conditions, as Indonesia’s Weda Bay annual output quota is capped lower at 37 million tons compared to last year’s 42 million tons.
Although the market experienced a decline of 1.4% so far this month and a second consecutive negative week, the current monthly average price rose to US$16,830, higher than that in the previous month.
LME-monitored nickel inventory remained flat at 264,444 tons, with the total volume decreasing by 1,728 tons in August, a drop of 0.6%.
In spite of weak demand from stainless steel sectors in China, restricted mineral supplies and declining warehouse inventories supported the price rebound.