London Metal Exchange (LME) nickel futures closed at US$18,235 yesterday (April 20), regaining the US$18,200 level despite Middle East geopolitical tensions.

A weakening US dollar and upcoming Chinese ultra-long special bond issuances drove this price recovery. This result came after a 5.08% rise last week, maintaining a two-week winning streak.

The average price in April reached US$17,375, topping the US$17,210 recorded in March.

Meanwhile, LME inventories added 402 tons to reach 278,526 tons, while the total decrease has reached 2,940 tons since April, a drop of 1%.

Due to the strong support from costs, market participants expect prices to trade within a high range in the short term.