London Metal Exchange (LME) nickel futures rebounded above the US$16,000 threshold following a four-session decline that reached a nine-and-a-half-month low.

Despite a strengthening US Dollar Index approaching the 100 level, the Federal Reserve enacted a 25-basis-point interest rate increase as anticipated by markets. Traders interpreted the monetary policy adjustment as a clearing of negative sentiment, lifting nickel futures and spot prices higher.

LME-monitored nickel inventory rose by 3.9% this month to reach 278,790 tons. Market participants said that persistent inventory accumulation and subdued Chinese stainless steel demand continue to pressure short-term price trends, with future direction dependent on consumption recovery.