The London Metal Exchange (LME) nickel futures price on August 29 hiked by US$158/ton and closed at US$15,421/ton. Also, the spot price went up greatly by US$159/ton to US$15,247/ton. Meanwhile, LME-monitored nickel inventories reversed to decrease by 132 tons to 209,544 tons. After rising, the prices have risen by a total of US$321 this month, an increase of 2.1%.

The US personal consumption expenditures (PCE) rose steadily in July, accompanied by a moderate increase in inflation indicators. Analysts noted that the negative impact of tariffs on the economy and inflation remains limited and is unlikely to disrupt the Federal Reserve’s plans for interest rate cuts. At the same time, the ongoing weakness of the US dollar supported gains across base metals, including nickel.

Market observers pointed out that the nickel market continues to face strong supply but weak demand. However, with September approaching, expectations for increased seasonal demand and the recent rise in China’s ferronickel prices suggest nickel prices may experience short-term volatility with a tendency toward strength.