London Metal Exchange (LME) nickel futures rebounded above US$19,200 per ton yesterday (June 1), reaching a one-month high after consecutive weekly increases.
The market responded to lower pure nickel inventories and new mining disruptions, including Zimbabwe’s restriction on nickel exports. These supply concerns offset a stronger US dollar fueled by rising Middle East tensions.
The nickel prices finally climbed by US$189 to close at US$19,251 per ton, trading between US$18,950 and US$19,360. Spot prices rose by US$172 to US$19,039 per ton. LME inventories dropped by 420 tons to 276,444 tons, totaling a 1,620-ton decline over two days.
Year-to-date, nickel prices have risen by US$2,605, a 15.6% hike. Market participants expect prices to fluctuate with a firm trend, supported by China’s expanding electric vehicle sector.