The London Metal Exchange (LME) nickel futures surged by US$397 yesterday (March 6), closing at US$16,298/ton, and spot prices also rose by US$402 to US$16,085/ton.

Nickel prices hit a new high since January 11, totally rising by US$865 so far this month, an increase of 5.6%, and the cumulative increase reached US$970 or 6.3% so far this year. The average nickel price in March was US$15,818/ton, higher than US$15,251 in the previous month.

Meanwhile, LME inventories increased by 4,890 tons to 199,410 tons, a cumulative growth of 2.28% in March.

The weaker US dollar, delayed US tariffs on automobiles from Canada and Mexico, and a rebound in stainless steel futures have driven a rebound in nickel prices, but rising inventories could bring short-term volatility.