The London Metal Exchange (LME) nickel futures price on December 19 greatly hiked by US$162/ton to US$14,803/ton. The spot price also increased greatly by US$165/ton to US$14,615/ton. At the same time, LME-monitored inventories reversed and increased by 612 tons, reaching 254,550 tons. Since the beginning of this month, it has declined by a cumulative 210 tons, representing a 0.08% decrease.

Nickel prices moved higher despite continued strength in the U.S. dollar, as market expectations for another U.S. Federal Reserve interest rate cut increased. Prices were also supported by Indonesia’s latest policy aimed at restricting new mining capacity, as well as a rebound in China’s stainless steel futures.

However, downstream demand from the stainless steel sector continues to be weak, while inventories of refined nickel remain at elevated levels. As a result, nickel prices are expected to fluctuate within a volatile range in the short term.