The three-month futures price of nickel on the London Metal Exchange (LME) surged by US$302/ton yesterday (June 1st), closing at US$12,626/ton, which has risen for three consecutive trading days. The spot price also soared by US$297.75/ton to US$12,557.5/ton.

Meanwhile, LME’s market inventory of nickel increased by 318 tons, reaching 233,498 tons. The cumulative increase in May was 2,022 tons.

According to market participants, the US and China’s manufacturing data was better than expected, which led to a sharp increase in nickel prices.

Despite the weak demand for stainless steel in China, Tsingshan’s high prices and China’s stable spot prices of stainless steel were expected to stabilize nickel prices for the short term.