The London Metal Exchange (LME) nickel futures closed at US$18,270/ton yesterday (January 28), rebounding from a two-day decline. Despite a stronger US dollar after the Federal Reserve kept interest rates steady, nickel prices climbed due to strong US economic data and rising industrial profits in China.
The price had a US$600 intraday swing, peaking at US$18,645. Monthly growth now total US$1,624, and the average price has reached US$17,750 so far this month, significantly higher than December’s levels.
Meanwhile, LME inventories grew by 12.2% this month to 286,338 tons.
The termination of a three-year profit decline in the Chinese industry provided support to the nickel prices. Market participants expect short-term price volatility as high stock levels counterbalance the positive economic outlook.