The London Metal Exchange (LME) nickel futures price rebounded yesterday (August 3), rising to above US$15,300/ton. The turnaround was driven by weaker-than-expected US jobs data, which fueled speculation of an earlier interest rate cut by the Federal Reserve and a subsequent weakening of the US dollar.

The nickel price closed at US$15,304/ton, an increase of US$72 from the previous day. The spot price also rose by US$70, settling at US$15,117/ton. However, the price gains were limited by a significant increase in LME nickel inventories, which jumped by 3,996 tons to a total of 214,230 tons.

Market participants expected that the growing nickel inventory may cause prices to fluctuate in the short term.