LME nickel three-month prices inched higher this week, settling at $17,630/mt on June 14. The move follows a volatile stretch that saw nickel touch $19,200/mt on June 4 before retreating to test $16,500/mt. The day-delayed LME closing price was reported at $16,984/mt.
The price action reflects an ongoing tug-of-war between bullish inventory dynamics and bearish supply expansion. LME nickel inventories at 274,938 tonnes remain elevated relative to historical averages — a legacy of the 2024-2025 Indonesian supply wave.
On the Shanghai Futures Exchange, nickel gained 0.74% to close at 149,340 CNY/mt. SHFE inventories are declining, with weekly data showing a 3.2% draw as Chinese stainless steel and battery factories restock after destocking in May.
Trading Economics' benchmark CFD tracks nickel at approximately $17,878/mt, with the broader complex reflecting cautious optimism. Market participants are watching for a definitive break above $18,000/mt to confirm the next leg higher.
Volume on the LME has been below average this week, suggesting the move lacks conviction. Open interest is flat, indicating that the rally is driven by short-covering rather than fresh long positioning — a pattern that can reverse quickly.
Nickel remains a two-sided market. Buyers should avoid chasing rallies above $18,000/mt without clear inventory confirmation. The $16,500-17,500/mt range is a fair-value zone for layering in H1 2027 coverage via costless collars.