The London Metal Exchange (LME) nickel futures price on March 12 soared by US$49/ton to US$17,742/ton. The spot price also hiked by US$49/ton to US$17,534/ton. Besides, inventories monitored by the LME kept decreasing by 564 tons, reaching 285,684 tons. Since the beginning of this month, inventories have declined by 2,292 tons, decreasing by 0.8%.

Although the US dollar continued to strengthen due to safe-haven demand, nickel prices kept rising as several nickel plants in Indonesia suspended production, and shipping costs for nickel ore from the Philippines increased, pushing up costs. In addition, LME nickel inventories have declined for several consecutive days, further supporting the price increase.

Market participants said that supply in the nickel market has tightened, while demand growth remains relatively weak. In the short term, nickel prices may move in a relatively stable and volatile range.