The London Metal Exchange (LME) nickel futures price rose to a two-week high yesterday (August 26), surpassing the US$15,200/ton level. The increase was driven by a weaker US dollar, which offset a recent Indonesian policy change that removed the obligation for miners to use government benchmark prices as the floor price in minerals and coal sales.
Despite a week of losses and a previous day’s market closure, the LME nickel futures price rebounded, closing at US$15,285/ton, up by US$185. The spot price also rose US$15,100/ton, an increase of US$176.
However, market participants predict that the market will continue to be volatile in the short term due to weak underlying demand for the metal, despite the recent price gains.