The London Metal Exchange (LME) nickel futures price on January 23 significantly hiked by US$760/ton to US$18,756/ton. The spot price also hiked by US$763/ton to US$18,553/ton. In addition, LME-monitored inventories continued to decline yesterday, falling by a further 768 tons to 283,728 tons.

Base metals prices advanced broadly after a series of supportive macroeconomic signals, pushing nickel prices higher. US initial jobless claims, third-quarter GDP, and core PCE data all showed solid performance, while the US dollar continued to weaken. At the same time, China maintained a firm monetary easing stance, highlighted by the implementation of ultra-long-term special government bonds and increased support for equipment upgrades, which together boosted sentiment across the metals market.

Nickel prices also received support from a recent decline in global refined nickel inventories. Market participants said that, in addition to fund-driven sentiment, pre-holiday stockpiling activity and ongoing supply concerns have jointly underpinned nickel prices. In the near term, nickel prices are expected to remain in a fluctuating but relatively strong range.