London Metal Exchange (LME) nickel futures dropped slightly yesterday (June 2) but strongly defended the US$19,200 per ton threshold, closing at US$19,248 per ton after a US$3 decline.

Despite the minor pullback from a recent one-month high, nickel maintained its upward momentum, rising by US$186 this month and growing by 15.6% so far this year.

Market fundamentals remain strong. LME inventories fell by 1,104 tons to 275,340 tons, representing a 0.15% drop this month. Supply constraints lent support, as Indonesian mixed hydroxide precipitate (MHP) output dropped.

Although stable US labor data stoked fears of persistent Federal Reserve inflation control, steady Chinese stainless steel demand and declining stockpiles offset seasonal mining increases from the Philippines, positioning nickel for narrow-range stability.