LME nickel futures rebounded greatly yesterday (July 4), closing at US$22,499/ton, a surge of US$675. The spot price also soared by US$681 to US$22,447/ton.

Meanwhile, LME nickel inventory was up by 126 tons, reaching 66,624 tons. The cumulative decrease this month has totaled 156 tons.

According to market participants, China’s Manufacturing Purchasing Managers' Index (PMI) rebounded in June. The current nickel inventory is at a historically low level. Besides, downstream buyers replenished their stock when the nickel price was low previously. All the above were the reasons to drive nickel prices to bounce strongly.