London Metal Exchange (LME) nickel futures rebounded yesterday (July 1), closing at US$16,355 per ton after hitting a six-month low. The metal finally rose by US$68, with a US$395 intraday swing between US$16,160 and US$16,555. Spot prices also hiked by US$64 to settle at US$16,153. This turnaround trimmed nickel’s year-to-date loss to 1.75%, recovering slightly from a 14.5% plunge in June.
Bargain hunting and macroeconomic indicators drove the recovery. Although the US dollar maintained strength, US private payroll growth of 98,000 fell short of expectations, yet manufacturing sustained expansion.
On the physical side, LME inventories dropped by 210 tons to 274,230 tons. Market participants predict near-term price fluctuations as weak Chinese stainless steel demand offsets recovering renewable energy sector needs.