The London Metal Exchange (LME) nickel futures price rebounded from the losses for the previous two days, rising back above the US$15,300/ton level yesterday (September 29). The price closed at US$15,327/ton, up by US$152, bouncing from a two-week low.

The turnaround was due to China's latest plan to support the growth of the nonferrous metals industry, which upheld metal futures, including nickel prices. This outweighed reduced pre-holiday inventory demand. Although LME nickel futures had registered two consecutive weekly declines, the rebound was also supported by expectations of seasonal peak demand.

Market participants said that high-purity nickel stocks will limit any sharp rise in nickel prices, suggesting that prices may have short-term fluctuations, especially as China's stainless steel industry enters its traditional peak season.