London Metal Exchange (LME) nickel futures rose back above US$19,000 yesterday (May 11), recovering from a two-week low. The price rose by US$361 to close at US$19,253 per ton, ending a three-day decline. This turnaround was due to rising production costs and tight sulfur supplies, which might force refineries to reduce output.

In addition, global shipping risks are also driving up the price of smelting raw materials.

Data shows nickel has increased by 15.7% so far this year. Although high refined nickel inventories exert pressure, resilient economic indicators from China and growing demand from the new energy sector provide support.

Meanwhile, LME warehouse stocks dropped by 948 tons to 276,840 tons. Market participants expected prices to fluctuate in the near term as supply constraints at mines compete with weak stainless steel demand.