The London Metal Exchange (LME) nickel futures rose to US$17,844/ton last Friday (February 27), ending the week with an increase of 2.85%. This performance secured a second consecutive weekly growth, though the metal finished February with a 0.6% monthly loss.
Market sentiment turned positive as the US dollar weakened and January PPI data exceeded expectations. Besides, Shanghai’s new housing policies and a 1,530-ton drop in LME inventories supported the price recovery. Despite these gains, the average price of US$17,174 in February was lower than January’s average.
Market participants expect price volatility in the near term. The outlook depends on balancing high inventory levels against improved industrial demand and supportive policies in China.