LME’s nickel prices rise on rate-cut hopes despite growing inventories

On September 10, the London Metal Exchange (LME) nickel futures price increased by US$41/ton and closed at US$15,146/ton. Also, the spot price went up by US$46.5/ton to US$14,963/ton. Meanwhile, LME-monitored nickel inventories kept increasing by 3,024 tons to 221,094 tons. Nickel prices rose after the US Producer Price Index (PPI) declined by 0.1% in August, strengthening market expectations that the Federal Reserve may cut interest rates this month. However, the upward movement was limited by an increase in pure nickel inventories. Market observers stated that the nickel market is expected to experience a volatile trend in the short term.