London Metal Exchange (LME) nickel futures rebounded to close at US$18,806 per ton after reports said that factories in Indonesia's Weda Bay Industrial Park will cut high-grade nickel pig iron production by 10% to 15% over the coming months. This supply anxiety countered a stronger US dollar and Federal Reserve rate hike fears, which dragged other base metals down.

During the session, prices fluctuated by US$745, peaking at US$19,165. Spot prices similarly hiked by US$243 to end at US$18,609 per ton.

Despite LME inventories rising by 534 tons to 276,096 tons, the average price of US$18,854 in May so far is higher than April's.

Market participants expect volatile short-term trading because weak Chinese stainless steel demand during the off-season limits further price growth, aided by improving ore supplies from the Philippines.