London Metal Exchange (LME) nickel futures maintained momentum yesterday (July 13), closing at US$16,766 per ton after a US$25 increase. This performance keeps prices above the US$16,700 level, reaching the highest point since June 26. Prices have risen by 2.94% this month, offsetting a portion of earlier volatility.
Market direction remains caught between conflicting pressures. Geopolitical tension and a stronger US dollar, driven by inflation concerns and potential interest rate hikes, exert downward force. However, restricted commodity exports from Indonesia and high sulfur costs maintain price support by increasing smelting expenses.
Market participants indicate that supply-side instability in Indonesia currently battles weak demand from the Chinese stainless steel sector, leaving short-term price movement dependent on upcoming US inflation data.