The London Metal Exchange (LME) nickel futures price on February 25 hiked by US$176/ton to US$18,085/ton. The spot price also soared by US$182/ton to US$17,880/ton. Meanwhile, LME-monitored inventories reversed to increase by 480 tons to 287,808 tons.

Nickel prices surged by a total of US$802 over two days, driven by a weakening US dollar index and the resumption of work in China after the holiday, which created replenishment demand from steel mills. Strength in the Chinese stainless steel market also contributed to the upward movement.

Market participants said that Indonesia’s production cuts and the rainy season tightened supply from the mining side, supporting nickel prices. At the same time, China’s refined nickel output increased, and pure nickel inventories remained high, limiting further gains. The market is expected to remain moderately strong and volatile in the short term.