Nickel price surges on Indonesia’s decision to prevent nickel oversupply
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Update time : 2023-07-31 16:40:05
The LME nickel futures surged by US$618 last Friday (July 28), closing at US$22,307/ton. The spot price also soared by US$620, reaching US$22,079/ton. The nickel price has risen by US$1,791 so far this month, an increase of 8.7%.
At the same time, the LME-monitored nickel inventory decreased by 48 tons, coming to 37,542 tons. The inventory has decreased by 1,308 tons since July.
The prices of stainless steel in China declined, but the US dollar weakened on July 28 after the Fed raises interest rates by one-quarter percentage point on July 26. Coupled with Indonesia’s decision to control the new nickel smelters in order to prevent nickel oversupply, the nickel price increased greatly accordingly.
Market participants expected that the US will slow down the interest rate hikes in the future and China’s policy will focus on expanding domestic demand. With a good outlook for the market demand, the nickel price was expected to be supported if Indonesia can well control the nickel capacity and prevent oversupply.
