The London Metal Exchange (LME) nickel futures continued to rise last Friday (June 27), though with smaller gains, closing at US$15,245/ton, a hike of US$36. The spot price also grew by US$38, reaching US$15,060/ton. This uptick, pushing prices to a two-week high, came as the US dollar weakened and US consumer spending showed an unexpected decline.
These factors, combined with moderate inflation, have increased market expectations for a Federal Reserve interest rate cut later this year. China's positive economic policies also supported its stainless steel futures, which in turn contributed to higher nickel prices.
However, market participants expected nickel prices to fluctuate in the short term due to weak demand during the traditional off-peak season in China and reduced support from mining operations as the rainy season ends in the Philippines and Indonesia.
