The London Metal Exchange (LME) nickel futures price soared by US$234/ton and closed at US$16,071/ton on July 30. Meanwhile, the nickel spot price also hiked by US$232.5/ton to US$15,797.5/ton. The nickel inventory at LME on July 29 increased by 702 tons to 105,090 tons.

Despite an increase in nickel inventory in LME, the weakening US dollar and the rise of China's ferronickel prices above CNY1,000 have spurred downstream buyers to make purchases, consequently driving nickel prices higher.

On a macroeconomic level, the robust performance of the US GDP in the second quarter and the better-than-expected economic growth in the Eurozone have improved market sentiment. As a result, nickel prices are anticipated to exhibit a strong and volatile trend in the short term.