London Metal Exchange (LME) nickel futures rebounded above US$16,900 after two consecutive sessions of losses. The price settled at US$16,948 per ton, up by US$118, and spot prices also hiked by US$121 to reach US$16,741 per ton.

The latest American Consumer Price Index (CPI) rose by 0.1% monthly and slowed annually to 3.4%, lowering Federal Reserve September rate hike expectations despite a stronger US dollar. Additional support derived from supply disruptions caused by an Indonesian smelter suspension.

Nonetheless, persistent high global refined nickel inventories and weak Chinese stainless steel demand cap significant price appreciation, pointing toward continued short-term market volatility as market participants monitor forthcoming producer price index and personal consumption expenditure data.