The London Metal Exchange (LME) nickel futures rose slightly last Friday (February 6), closing at US$17,090 per ton. A weaker US dollar, a rising US Consumer Sentiment Index at 57.3, and a stock market rally helped prices stay above the US$17,000 level.

Meanwhile, LME inventories also dropped by 792 tons to 285,282 tons, aiding the small recovery.

Despite this daily growth, nickel prices have fallen by 4.8% so far this month, resulting in two consecutive weekly declines. Prices reached a 19-month peak of US$18,756 on January 23 but have since cooled.

According to market participants, although low stocks and economic data provide support, weak market demand points toward continued price volatility in the short term.