The London Metal Exchange (LME) nickel futures price on January 14 significantly soared by US$1,013/ton to US$18,694/ton. The spot price also hiked by US$1,011/ton to US$18,495/ton.

Nickel prices rose sharply after the U.S. core consumer price index (CPI) increased 2.6% year-on-year in December, marking a nearly five-year low. The data strengthened market expectations for a Federal Reserve rate cut, leading to a decline in the U.S. dollar. In China, falling stainless steel inventories and increased scheduled output at steel mills are expected to support demand, contributing to the rise in nickel.

Market participants said that, despite high global refined nickel inventories, the main driver is the expected tightening of supply from the mining sector. Competition among major global economies over critical minerals is also intensifying. As a key material for electric vehicle batteries, nickel’s strategic value is being reassessed, suggesting that prices may experience short-term firm and volatile movements.