Due To Indonesia's Decision To Prevent Nickel Excess, Nickel Prices Have Increased.

Last Friday, July 28, the LME nickel futures increased by US$618 and closed at US$22,307/ton. The spot price increased by a further US$620, up to US$22,079/ton. This month alone, the price of nickel has increased by US$1,791, or 8.7%.

The LME-monitored nickel inventory fell by 48 tons, to 37,542 tons, at the same period. Since July, the inventory has dropped by 1,308 tons.

While the cost of stainless steel in China dropped, the US dollar fell on July 28 as a result of the Fed's one-quarter percentage point increase in interest rates on July 26. The new nickel smelters were restricted by Indonesia in order to avoid nickel oversupply, which had a significant impact on nickel prices.

Market investors anticipated that the US will eventually limit the rate of interest rate increases while China's policies would concentrate on increasing domestic demand. The nickel price was anticipated to be sustained by a positive forecast for market demand, provided Indonesia can effectively manage the nickel capacity and avoid excess.