Broad Gains in London Metals: Nickel Prices Expected to Trend Strongly in the Short Term

London metals have seen a broad increase, with domestic and international nickel ore prices remaining stable, as well as nickel pig iron prices. The approval process for Indonesia's RKAB remains slow, leading to an increase in domestic trade base prices and maintaining high premiums, which provide some support for nickel prices on the cost side. The outbreak of riots in New Caledonia, which accounts for 6% of global nickel ore production, and the upgrade of Indonesia's Ibu volcano alert to the highest level have boosted nickel prices. Coupled with international tensions and a weakening US dollar, non-ferrous metals have seen significant gains. Downstream demand remains stable, and the supply landscape is relaxed. It is expected that nickel prices will trend strongly in the short term.