The London Metal Exchange (LME) nickel futures closed at US$17,003/ton yesterday (January 5), hitting the highest level since October 2024. This rally was due to a weaker US dollar and supply anxieties triggered by suspended mining operations at Vale Indonesia. Although prices fluctuated significantly between US$16,700 and US$17,350 during the session, the metal maintained its upward momentum alongside surging copper prices.

Despite a 2.14% growth so far this year, market participants point to weak terminal demand and high inventory levels, currently at 255,354 tons, as potential hurdles.

While Indonesian production cuts support the market, industry players anticipate high-altitude volatility rather than a sustained breakout, as current market conditions reflect strong supply paired with quiet seasonal consumption.