LME nickel futures prices rebounded yesterday (November 28), closing at US$16,064/ton, an increase of US$181, returning to the US$16,000 level.

Nickel prices have risen by a total of US$346 so far this month, a growth of 2.2%.

As the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s (Fed) preferred measure of inflation, rose by 2.3% year on year and 0.2% month on month in October, meeting market expectations, the Fed was expected to further cut interest rates. Besides, China’s stainless steel futures have stopped dropping. Both factors drove up nickel prices.

Nonetheless, there is still an oversupply in the nickel market, leading to an expected fluctuating trend for nickel prices in the short term.