LME nickel futures continued to increase last Friday (January 10), closing at US$15,658/ton, an increase of US$176. The spot price also rose by US$178 to US$15,450/ton.

The cumulative increase last week reached US$547, a hike of 3.6%. The nickel price has risen by US$330 so far this year, a growth of 2.15%.

At the same time, LME nickel inventories increased by 594 tons, reaching 164,904 tons. Inventories have grown by 4,368 tons or 2.7% this month.

The US dollar continued to strengthen, with the US dollar index hitting the highest intraday level since November 11, 2022, but the US nonfarm payrolls were strong. Besides, news from Indonesia about a cut in nickel ore mining quotas also supported the price of nickel ore and further boosted nickel prices. However, due to the current weak market demand, the short-term nickel price was expected to fluctuate.