At 10.22am London time, three-month nickel was at $10,400 per tonne, after trading below $10,000 per tonne during Asian trading hours.
However, even at this level, the LME price is down nearly $4,000 per tonne from its January 2015 level and around $8,000 below the level at the same time last year.
“Physical sales to China have been quite bad and there is no upward push for nickel,” a trader in Singapore said.
The LME increase was just fleeting, he added, commenting on yesterday’s rise.
“I am not reading much into the nickel price rise,” a trader in China said.
“It followed the rest of the base metals complex higher and was a correction that was bound to happen,” he added.
The caution in the traders’ tone possibly stems from the fundamentals of demand – the weak stainless market in China – and ample...