The London Metal Exchange (LME) nickel futures continued rising yesterday (May 14), up by US$136 and closing at US$15,871/ton, a 1.5-month high. Positive market sentiment, stimulated by the tariff reductions imposed by the US and China, drove both Chinese stainless steel prices and nickel prices.

Besides, spot prices also climbed to US$15,675/ton, rising by US$134. Nickel prices have hiked by 2.9% since May and by 3.5% year-to-date.

Meanwhile, LME-monitored nickel inventories slightly decreased by 84 tons to 198,432 tons. The decrease has reached 2,886 tons since May, a drop of 1.43%.

Market participants expected that strong nickel ore support may lead to short-term price volatility with an upward trend.