The London Metal Exchange (LME) nickel futures price on February 9 kept increasing by US$259/ton to US$17,349/ton. The spot price also went up significantly by US$259/ton to US$17,139/ton. Meanwhile, LME-monitored inventories continued to decrease by 210 tons to 285,072 tons.

Nickel prices extended their gains as market sentiment improved amid a continued weakening of the US dollar, a sustained recovery in China’s foreign exchange reserves, and a stable Chinese Yuan exchange rate. At the same time, mining and shipment activities in Indonesia and the Philippines were disrupted by the rainy season, while inventories of nickel on the LME continued to decline, further supporting higher prices.

Meanwhile, pre-holiday restocking driven by rigid demand in China remained in place. Chinese stainless steel producers secured spot materials to avoid potential price increases after the holiday period, prompting traders to hold back sales. This tightened spot availability and further supported nickel prices. The market expects prices to fluctuate within a narrow range with a firm bias in the short term.