Nickel prices rose sharply in February, and continued to accumulate inventory, putting pressure on nickel prices in late March [SMM analysis]

In February, nickel prices surged significantly, with Shanghai nickel futures experiencing a trend of fluctuating upward pressure, driven by factors such as a decline in the US dollar, favorable domestic policies, and tightening supply due to slow approval of Indonesian nickel ore quotas. The monthly increase in Shanghai nickel futures was 8.28%, while London nickel also saw a similar trend with a 9.95% increase in February. As March begins, the weakening US dollar and frequent favorable domestic policies may stimulate downstream demand in the non-ferrous sector. However, sentiment regarding Indonesian nickel ore quotas on the supply side is gradually weakening, while demand continues to recover. Additionally, recent increases in inventories may put pressure on nickel prices in late March.