The LME nickel futures surged by US$388 yesterday (December 27), closing at US$16,938/ton. The spot price also greatly increased by US$409, reaching US$16,688/ton.

At the same time, the LME-monitored nickel inventory soared by 2,746 tons, coming to 57,804 tons. The cumulative increase this month has totaled 11,466 tons.

Despite the surge in pure nickel inventories, the US dollar index fell to below 101 on Wednesday, hitting a five-month low, coupled with the four consecutive months of growth in China’s industrial companies’ profits in November, the nickel price was driven up. However, the current oversupply problems still keep market concerns about possible weak price trends in the short term.