The LME nickel price rebounded to the US$33,000/ton level this week. The current demand is weak but the nickel price keeps at a high level.

Affected by the ongoing war between Russia and Ukraine, Russian material exports have been sanctioned and caused a short supply. In addition, the natural gas price is still high and electricity prices are also expensive in European countries.

Due to the high production cost, European mills’ production capacity cannot be restored quickly. Also, with the outbreak of the epidemic in China, many nickel productions declined and were not easy to deliver. The above factors caused the recent nickel to remain high. It still needs time to observe the nickel prices in the near future.