LME nickel stabilizes above $17,200 as inventory drops

London Metal Exchange (LME) nickel prices stabilized at a one-month high, ending nearly flat at US$17,233 per ton after ranging between US$17,145 and US$17,470. A sharp drop in LME inventories, which fell by 1,980 tons to 268,548 tons, provided strong fundamental support alongside rising Chinese stainless steel futures. Higher crude oil prices and a stronger US dollar fueled inflation worries and increased expectations for Federal Reserve rate hikes. Despite these headwinds, tightening warehouse stocks held prices steady. Market participants expect short-term price volatility due to ongoing macroeconomic uncertainties and soft demand during the traditional off-season.