The London Metal Exchange (LME) nickel futures price on January 6 significantly soared by US$1,521/ton to US$18,524/ton. The spot price also hiked by US$1,497/ton to US$18,347/ton. After nickel prices surged yesterday, it marked the strongest level since June 7, 2024. In the first three trading days of the month, prices jumped by a cumulative US$1,878, an increase of 11.3%. The average nickel price for January has so far reached US$17,292 per ton, compared with an average of US$14,884 in December.

Although the U.S. dollar rebounded, supply concerns supported prices following Indonesia’s reduction in nickel ore output and the temporary suspension of mining operations by PT Vale Indonesia. Political developments in Venezuela also boosted safe-haven sentiment toward metals, while buying activity from Chinese investors in nickel and tin further pushed prices higher.

The market demand remains weak. The nickel market continues to face a supply-heavy and demand-light fundamental backdrop, with LME inventories still accumulating and refined nickel production in China increasing. Market participants indicated that the recent surge was driven mainly by short-term speculative activity, and future price trends will hinge on changes in Indonesian policy.