The London Metal Exchange (LME) nickel futures soared by US$135 yesterday (June 26), closing at US$15,209/ton. The price has risen for three days in a row. The spot prices also increased by US$145 to US$15,021/ton.

LME nickel futures reached a two-week new high as the US Federal Reserve is expected to cut interest rates more than anticipated, weakening the dollar. Besides, China's outlined 19 measures to strengthen consumers’ purchasing power further drove up nickel prices.

Meanwhile, LME inventories also had a slight decrease of 146 tons, reaching 204,216 tons. The total increase has totaled 4,836 tons since this month, an increase of 2.4%.

However, market participants foresaw price volatility as the rainy seasons in the Philippines and Indonesia ended, which would lead to increased nickel ore shipments. Additionally, demand from China's stainless steel market remains weak.