The most-traded July nickel contract price surged to 110,280 ($17,269) per tonne as of 09.28 am Shanghai time, up 2,090 yuan per tonne from yesterday’s close.
The three-month nickel price on the LME closed at $14,900 per tonne on May 24, up $250 from previous trading close.
The fall in the US dollar overnight boosted investor appetite, thus lifting base metals prices up except for that of tin.
The US dollar index hit a low of 93.586 at 10.00pm on Thursday, compared with its peak at 94.188 at 01.00am over the same day.
“The US-North Korea summit was called off, and this has led to a fall in the US dollar,” according to Galaxy Futures.
Lending upward momentum to the nickel price was a further dip in stock levels, while the demand from electric vehicle sector and stainless steel continue to compound broadly bullish price sentiment.
LME nickel inventory fell 774 tonnes to 296,898 total tonnes on May 24. Meanwhile, nickel inventory at SHFE warehouses also declined 2,621 tonnes week on week to 33,000 tonnes as of May 18.
“The supply deficit of nickel is still persistent in China, as the import window has remained closed and domestic stocks have been declining,” according to Galaxy Futures.
Tin under pressure
Currency moves and data releases