London Metal Exchange (LME) nickel futures dropped slightly by US$2 to close at US$16,422 per ton yesterday (July 6), maintaining a position above the US$16,400 level. This stability was due to a flat US dollar and unchanged LME warehouse inventories, which stayed at 274,620 tons.
The spot price fell by US$11 to US$16,208 per ton. During the session, the metal traded between US$16,500 and US$16,215. This stabilization ends a five-week losing period, which included a yearly low of US$16,250 on July 2.
The current market faces a weak demand season from the Chinese stainless steel industry. However, strong production costs limit further price drops, keeping short-term movements small.