The London Metal Exchange (LME) nickel futures climbed over US$100 yesterday (June 25), returning to the US$15,000 level after two days. This rise came due to growing expectations of a US Federal Reserve interest rate cut, which weakened the dollar. Additionally, positive macroeconomic policies from China contributed to the continued price increase, pushing nickel to a one-week high.
On June 25, nickel futures closed at US$15,074/ton, up by US$154, with spot prices also increasing by US$155 to US$14,876.
While LME nickel inventories had an uptick of 432 tons, reaching 204,360 tons, the overall market sentiment, driven by expected interest rate cuts and China’s consumption policies, supported the price growth. However, weak demand in the stainless steel industry means that prices will be volatile in the short term.