The London Metal Exchange (LME) nickel futures closed at US$16,828/ton yesterday (December 30), soaring by more than US$1,000 in a single session. This 18% spike since mid-December was mainly due to production cuts in Indonesia and China's new tariff policies aimed at raising domestic demand. Despite a strong US dollar, nickel outperformed other base metals to reach its highest price point since October last year.

Meanwhile, LME inventories remain stable at 255,186 tons, and the average nickel price for December has surpassed November levels, reaching US$14,803.

Market participants said that although supply constraints drive the current rally, actual demand remains quiet. Future price stability depends on how strictly Indonesia implements its mining reductions and whether high refined nickel stocks weigh on the market.