TheLondon Metal Exchange (LME)nickel futures continued their upward trend for a third straight day, with gains expanding further yesterday, February 6. The futures closed at US$15,811/ton, marking a US$276/ton increase. At the same time, the spot price climbed US$283/ton to settle at US$15,594/ton. LME-monitored inventories rose by 978 tons on February 6, reaching a total of 173,562 tons. So far this month, inventory has risen by 1,258 tons, a 0.7% increase.

The weaker U.S. dollar and expectations that a tariff trade war may be avoided have bolstered market confidence. Furthermore, active restocking by Chinese nickel-iron producers following the holidays has fueled the ongoing rise in nickel prices. However, with pure nickel oversupply and a continued build-up in inventories, the scope for further price increases may be limited.