Nickel prices on the London market soared by over 9%, marking the biggest jump in more than three years, as a surge in buying interest from Chinese investors fueled a broad rally in the metals market.
According to Bloomberg, this metal—used in batteries and stainless steel—on the London Metal Exchange (LME) at one point rose to $18,545 per ton (75,100 ringgit), extending its strong rally of more than 20% over the past two weeks.
Despite a severe surplus in the nickel market, rising production risks in Indonesia—the largest supplier—and a broad inflow of capital into China's domestic metal market have together supported market sentiment.
Trading activity indicates that this week, Chinese investors have played a significant role in driving up prices for metals including nickel, copper, and tin: Metal prices surged during LME's Asian hours with high trading volumes, and then strengthened again after the night session opened on the Shanghai Futures Exchange.