London Metal Exchange (LME) nickel futures rebounded yesterday (October 27), closing up by US$69 at US$15,629 per ton after trading between US$15,500 and US$15,735. Spot prices rose by US$68 to US$15,439 per ton.
The recovery succeeded three consecutive losing sessions that had erased US$606 or 3.7%. Despite the US dollar index reaching 102, market expectations of unchanged US Federal Reserve interest rates and technical correction sentiment supported the price growth.
So far this month, nickel prices decreased by US$299 or 1.87%, extending a year-to-date decline of US$1,017 or 6.1%. In the meantime, LME nickel inventories increased by 280 tons to 280,218 tons, though monthly stocks remain down by 4,680 tons or 1.64%.
Lower Indonesian nickel ore prices, high global refined nickel stocks, and soft demand continue to weigh on market sentiment.