The London Metal Exchange (LME) nickel futures price on December 22 soared by US$473/ton to US$15,276/ton. The spot price also went up significantly by US$472/ton to US$15,087/ton. Nickel futures have climbed for four straight trading sessions, gaining a cumulative US$1,013/ton, or 7.1%, to their highest level in nearly two months since October 30. Since the start of December, prices have risen by US$447, representing an increase of 3%.

With the effects of Indonesia’s planned nickel ore production cuts for next year beginning to materialize, and market expectations rising that the Federal Reserve may cut interest rates twice next year, the U.S. dollar has weakened, pushing nickel prices sharply higher. However, the nickel market remains oversupplied and is characterized by declining supply expectations alongside still-weak actual demand, indicating that prices may fluctuate with a slightly high side in the short term.