On May 16, the London Metal Exchange (LME) witnessed a significant increase in nickel futures prices, rising by US$308/ton to close at US$19,797/ton. Concurrently, the nickel spot price also experienced a hike of US$311/ton, reaching US$19,576/ton. The nickel inventory at LME saw an increase of 636 tons, totaling 81,630 tons.
Despite the rebound of the US dollar and the stabilization of critical US inflation data and job market conditions, there is an anticipation of a potential Federal Reserve interest rate cut this year. Such rate cuts are expected to stimulate the economy and market demand, thereby supporting the continued rise in nickel prices.
Furthermore, the sluggish approval process for Indonesian nickel mines has contributed to the upward trend in nickel prices. However, the notable increase in refined nickel inventories has led market participants to anticipate short-term fluctuations in nickel prices.
