8 November 2024 – Nickel prices on the LME and SHFE rose significantly again on Thursday and Friday. Stainless steel prices are also benefiting from the rise in nickel. And on Thursday, the US Federal Reserve cut interest rates for the second time in a row.
European nickel prices jump significantly on Thursday
Yesterday, Thursday, nickel prices on the LME commodity exchange jumped significantly. The LME Nickel Cash price rose by more than 4.1% and the LME Nickel 3-month by 3.8%. Today, Friday, the LME Nickel price has been moving sideways and has so far maintained its price of just under 16,500 USD/MT.
SHFE Nickel continues to rise
Nickel contracts on the Asian commodity exchange SHFE rose by around 2.3% yesterday and by a further 2.9% today. Chinese spot market prices for nickel also followed the trend and rose by around 2.6%.
In response to the significant rise in nickel, Asian stainless steel prices also scored with gains of up to 1%.
US central bank FED cuts interest rates again
The sometimes significant gains in nickel and stainless steel prices are partly due to the interest rate cut by the US Federal Reserve yesterday.
The US Federal Reserve lowered the benchmark overnight rate by 25 basis points to a range of 4.50% to 4.75%. This is the second cut in a row and a reaction to the cooling inflationary pressure in the United States.
In the press conference following the decision, Fed Chairman Jerome Powell pointed out that the US economy could perform better next year than previously assumed and that inflation is still on its way back to the 2% target.
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