London Metal Exchange (LME) nickel futures rose for a fourth consecutive trading session yesterday (October 21), closing up by US$572 at US$16,234 per ton after hitting an intra-day high of US$16,340.
Besides, spot prices also jumped by US$570 to reach US$16,030 per ton. The four-day increase totaled US$713 or 4.6%, bringing prices to a four-week high.
A weakening US dollar and reports that Chinese producers in Indonesia, primarily Tsingshan, plan significant production cuts drove bullish sentiment.
LME inventories remained steady at 280,866 tons, down by 1.4% this month. Despite short-term price strength, market participants said that oversupply conditions continue, with future trends depending on actual reduction volumes.