The nickel futures at the London Metal Exchange (LME) increased by US$84 and closed at US$15,602/ton on May 21. During the same day, the spot price also went up by US$87/ton to US$15,401/ton. Meanwhile, the inventory monitored by LME reversed to decrease by 312 tons to 201,786 tons. The US dollar index fell below the 100 mark as the US 20-year bond auction showed weak market demand. At the same time, China’s stainless steel futures stabilized, supporting a rebound in nickel prices.

However, market participants indicated that an oversupply of refined nickel and high inventory pressure may further deepen the supply-demand imbalance. As a result, nickel prices are expected to continue fluctuating in the short term.