Chinese market optimism & Fed's rate cut cause nickel prices to increase
Time:Mon, 23 Sep 2024 10:00:21 +0800
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The London Metal Exchange (LME) nickel futures price grew by US$177/ton and closed at US$16,510/ton on September 20. Meanwhile, the nickel spot price also grew by US$117/ton to US$16,274/ton. Besides, the nickel inventory at LME increased by 210 tons to 124,134 tons.
Despite the strength of the US dollar, a rate cut in the US could benefit real estate and manufacturing industries, potentially stimulating demand. In July, the global refined nickel market faced a supply shortfall of 6,800 tons. Additionally, optimism surrounding China's policy outlook, coupled with strong growth in the production and sales of new energy vehicles, has fueled a continued rise in nickel prices. However, with increasing inventories on the LME and overall market demand remaining soft, price trends would be uncertain after a short-term uptick.
