London Metal Exchange (LME) nickel futures closed at US$18,225 per ton yesterday (April 21), falling by US$25 but staying above the US$18,200 level.
The April average price reached US$17,385, surpassing March’s US$17,210. Meanwhile, LME inventories dropped by 420 tons to 278,166 tons.
Market participants said that the market shows a pattern of strong upstream and weak downstream as mining restrictions in Indonesia drive up ore costs while demand remains low.
The drop in prices was due to a stronger US dollar and risk aversion triggered by stalled Middle East peace talks. Furthermore, a 34% annual decline in Chinese stainless steel exports, particularly to the Middle East, pressured the metal prices. Given these supply and demand dynamics, market participants foresee continued price volatility in the near term.