The London Metal Exchange (LME) nickel futures price on December 18 greatly hiked by US$249/ton to US$14,641/ton. The spot price also soared by US$248/ton to US$14,450/ton. At the same time, LME-monitored inventories reversed and decreased by 60 tons, reaching 253,938 tons. Since the beginning of this month, it has declined by a cumulative 822 tons, representing a 0.32% decrease.

Despite a slight strengthening of the US dollar, the United States’ November CPI, released after a delay caused by a government shutdown, increased 2.7% year on year. The reading was lower than September’s 3% and also came in below the market expectation of 3.1%. Meanwhile, signs of weakness in the labor market raised the likelihood of a Federal Reserve interest rate cut in January, helping nickel prices extend their rebound to the highest level since December 11.

Meanwhile, Indonesia’s 2026 Work Plan and Budget (RKAB) sets nickel ore output at around 250 million tons, down from the 379 million tons planned under the 2025 RKAB, which also contributed to the upward momentum in nickel prices. Nevertheless, the nickel market remains oversupplied, and prices are expected to move in a volatile range in the short term.