The London Metal Exchange (LME) nickel futures price on April 14 increased greatly by US$508/ton to US$18,206/ton. The spot price also soared by US$501/ton to US$17,981/ton. Besides, inventories monitored by the LME kept decreasing by 822 tons, reaching 279,570 tons.

Higher ore prices driven by Indonesia’s adjustment to its nickel ore benchmark pricing mechanism provided support to the market. Expectations that negotiations over the Middle East conflict could resume, which weakened the US dollar. In the US, the Producer Price Index (PPI) for March rose by 0.5% month-on-month, below market expectations, easing inflationary pressure and supporting nickel prices.

Meanwhile, China’s PPI turned positive year-on-year to 0.5% in March, further supporting the upward momentum. Market participants said that in the short term, nickel price movements will mainly depend on macro geopolitical developments. However, with supportive policies in China, the issuance of special bond funds, and declining refined nickel inventories, prices are expected to fluctuate with a firm tone in the near term.