The London Metal Exchange (LME) nickel futures price on March 16 hiked by US$199/ton to US$17,465/ton. The spot price also soared by US$201/ton to US$17,258/ton. Besides, inventories monitored by the LME kept declining by 744 tons, reaching 283,914 tons. Since the beginning of this month, inventories have declined by 4,062 tons, decreasing by 1.4%.

Nickel prices rebounded after the U.S. dollar index retreated from the 100 level, while Indonesia strengthened its crackdown on illegal mining, and prices remained relatively low, prompting improved downstream purchasing sentiment. At the same time, declining LME nickel inventories in recent days also supported the upward movement in prices.

In addition, higher stainless steel production schedules in China for March provided further support to the nickel market. Market participants expect nickel prices to fluctuate at relatively strong levels in the short term.