Nickel prices muscle up on positive outlook for demand on industrial metals

Nickel prices rose on Wednesday even as the dollar gained ground against most major rivals following inflation data.

Earlier US government data showed yearly inflation accelerated more than expected in March, which could delay the timeline of interest rate cuts this year. 

US consumer prices rose 3.5% y/y in March, above estimates of 3.4%.

On a monthly basis, consumer prices rose 0.4%, while analysts expected a rise of 0.3%. 

Nickel prices have found recent support due to a bright outlook for global demand on industrial metals with corresponding weakening nickel supplies. 

Nickel has long suffered from an oversupply problem that pressured the prices for the past few years, however experts now expect a swing to deficit by 2028. 

Otherwise, the dollar index rose 0.8% as of 14:45 GMT to 105.05, with a session-high at 105.1, and a low at 104.02. 

Nickel spot prices rose 2.3% as of 14:57 GMT to $18.191 thousand a tonne.

Nickel is used extensively in steel manufacturing, and has promising applications in EV batteries.