London Metal Exchange (LME) nickel futures rebounded yesterday (March 30), closing at US$17,263 per ton after fluctuating by US$325 during the session.

This recovery in nickel prices was due to Federal Reserve Chair Jerome Powell’s stance that long-term inflation remains stable despite high oil prices. Such comments lowered US interest rate hike expectations, lifting base metals. However, a strong US dollar capped further gains.

Monthly nickel prices have dropped by 3.26%, though the prices were up by 3.7% so far this year. Meanwhile, LME inventories held steady at 281,574 tons.

Market fundamentals showed a tight ore supply, yet weak demand from the Chinese real estate sector continues. Market participants expected that prices would remain firm but volatile as high production costs provide a price floor.