The London Metal Exchange (LME) nickel futures price on April 13 soared by US$457/ton to US$17,698/ton. The spot price also soared by US$440/ton to US$17,480/ton. Besides, inventories monitored by the LME reversed to reduce by 1,278 tons, reaching 280,392 tons.

Although negotiations over the Middle East conflict reportedly broke down and the US is expected to blockade the Strait of Hormuz, the market expects that talks may continue, easing risk-aversion sentiment and weakening the US dollar. Meanwhile, Indonesia’s nickel ore production approval process was slow, resulting in a tight supply on the mining side. In addition, nickel ore inventories at Chinese ports fell to a five-year low, supporting the sharp increase in prices.

Market participants said that geopolitical risks will continue to influence nickel price movements in the short term. From a fundamental perspective, firm ore prices provided strong support for raw material costs. However, refined nickel remains in oversupply, and the market expects nickel prices to fluctuate with a firm tone in the near term.