London Metal Exchange (LME) nickel futures rose to a three-week high yesterday (July 16), surging by US$349 to close at US$17,152 per ton after hitting a session high of US$17,370. The spot price also added US$351 to end at US$16,952. This jump extends a 5.56% rebound from the July 2 bottom.

At the same time, LME inventories rose by 300 tons to 274,848 tons. The total amount increased by 408 tons this month, representing a growth of 0.15%.

A 13,400-ton global refined nickel deficit in May and escalating worries over rising sulfur costs drove the growth. Cooler US inflation also lowered expectations for a Federal Reserve interest rate hike at the upcoming July meeting. Market participants anticipate volatile, upward price movements in the near term due to high oil prices and slow Indonesian mining quota approvals.