London Metal Exchange (LME) nickel futures closed at US$16,861 per ton last Friday (August 28), posting a modest 1.15% weekly decline while preserving positions above the US$16,800 level. Spot prices also fell slightly by US$23 to US$16,701 per ton.
Hawkish commentary from Fed Chair Kevin Warsh regarding inflation triggered rate hike expectations, pushing the US dollar to a two-week high. Coupled with rising LME inventories touching 268,362 tons, currency strength pressured metal values downward. Despite this movement, the nickel price in August averaged US$16,751, higher than that in the previous month and maintaining a 1.3% annual rise.
Market participants observed that steady Chinese stainless steel production coupled with expanding Indonesian ferronickel output provides stable baseline activity. The short-term price trend will rely heavily on inventory reduction progress and demand recovery in September.