London Metal Exchange (LME) nickel futures hiked above US$19,600 yesterday (May 5), reaching the highest level since May 31, 2024. The price closed at US$19,642 per ton, soaring by US$277, after swinging between US$19,205 and US$19,675. The nickel price has increased by 18% so far this year.

Several factors drove this surge. A weaker US dollar and high prices for sulfur, an important processing material, push costs upward. Additionally, Indonesian authorities recently discussed potential export taxes on nickel products. While LME-monitored inventories rose slightly to 276,888 tons, total stockpiles for the month were down by 510 tons, or 0.18%.

Market participants believed tight sulfur supplies would keep prices firm. However, rising oil costs and inflation risks might pressure global demand. Future price trends depend heavily on whether refinery production cuts successfully reduce overall exchange stocks.