The London Metal Exchange (LME) nickel futures price on December 4 slightly increased by US$24/ton to US$14,897/ton. The spot price also edged up by US$29/ton to US$14,706/ton. Meanwhile, LME-monitored inventories reversed and increased by 126 tons, reaching 253,116 tons.

The U.S. Department of Labor reported yesterday that initial jobless claims dropped to their lowest level in more than three years, easing concerns about a deteriorating labor market. However, the data did not alter expectations for an interest rate cut next week. The weaker U.S. dollar that followed provided support for a mild increase in nickel prices. Market sources said strong supply and weak demand make nickel prices are expected to remain volatile in the short term.