LME nickel futures continued to rise yesterday (January 7), closing at US$15,398/ton, an increase for two days in a row. The spot price also rose by US$222 to US$15,171/ton.

Nickel prices have increased by US$70 this year, a hike of 0.45%, hitting a new high this month.

At the same time, LME nickel inventories increased by another 1,086 tons, reaching 165,366 tons. Inventories have grown by 4,830 tons or 3% this month.

Despite a stronger US dollar, nickel prices rose as market sentiment picked up on China's central bank policies. Market participants believed that oversupply and inventory growth might lead to short-term shocks, with the focus being on the upcoming US’ Fed interest rate meeting and non-farm payroll employment data.