The London Metal Exchange (LME) nickel futures settled at US$16,646/ton on December 31, falling from a 14-month high of US$16,828.

Strengthening US dollar performance and cautious Federal Reserve meeting minutes dampened rate-cut optimism, causing a US$182 drop. Despite this late slide, the metal achieved a 12.25% monthly growth and an 8.6% annual increase, ending the long-term downward trend for both periods.

Meanwhile, inventory levels rose slightly by 0.15% in December to 255,162 tons.

Although Indonesia’s production cuts provide a price floor, high global stocks and sluggish demand limit the potential increase. Market participants expect a sideways trend as supply constraints battle weak industrial consumption in the coming weeks.