LME Nickel Prices Nosedived to Hit Four-Year Lows

SEATTLE (Scrap Monster): On the first trading day of the New Year, nickel prices on the London Metal Exchange (LME) fell to their lowest point since 2020. As the trading day came to a close, the industrial metal's prices fell to $15,055 a ton on the exchange due to pressure from the rising dollar.

The U.S. unemployment claims report fell to an eight-month low, which set off the US dollar's rise. The purchasing power of manufacturers in large consumer countries like China was observed to be negatively impacted by a rising dollar.

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In China, the demand for nickel has been declining recently. A possible recovery of the struggling Chinese real estate market is crucial to the demand outlook. Future nickel prices may also be significantly impacted by the effects of possible import tariffs that the newly elected US president may impose.

The Chinese economy appears to be "overall stable," according to President Xi Jinping, who also reaffirmed that the nation is on course to reach its stated growth target of about 5% for 2024.

On the first trading day of 2024, copper, which had ended the year at a nine-month low, increased by a small 0.4% to $8,801.50 a ton. Trump's tariffs may cause China to expand its stimulus programs, which could limit the decline in copper prices in 2025.