Climbing 1% during the afternoon, nickel reached a daily high of $14,870 per tonne.
The metal’s declining inventories are contributing to its price rise, with total LME stocks falling 5,856 tonnes on the week.
Nickel’s cash/three-month spread is currently in a contango of $62 per tonne, moving back from $65c per tonne earlier today.
Recent forecasts surrounding nickel’s electric vehicle demand are boosting sentiment across the market, with a Vale executive predicting a tenfold surge in nickel demand by 2025.
“We have a constructive view on LME nickel, despite the consolidation since February, which we viewed as purely technical rather than fundamental,” Boris Mikanikrezai, analyst at Metal Bulletin said.
“The fundamentals of the market are robust, principally due to a strong global stainless steel sector, which should result in in a further fall in visible inventories and...