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Nickel price forecasting based onempirical mode decomposition and deep learning model with expansion mechanism

Author

Listed:
  • Jiaolong Li
  • Zhaoji Yu
  • Jichen Zhang
  • Weigao Meng

Abstract

As a critical material for stainless steel production, electric vehicle (EV) batteries, and advanced technology alloys, nickel plays a pivotal role in the global energy transition, with its strategic value becoming increasingly evident. This study presents a novel hybrid forecasting framework that combines Ensemble Empirical Mode Decomposition (EEMD) with a Dilated Long Short-Term Memory (Dilated LSTM) network to address the high uncertainty and complexity of nickel price fluctuations. By leveraging EEMD for multi-scale decomposition and Dilated LSTM for advanced temporal feature extraction, the proposed EEMD-DilatedLSTM model is designed to enhance predictive precision across different time horizons.Empirical results demonstrate that the proposed model outperforms benchmark algorithms in both short-term and medium-to-long-term prediction of nickel futures prices. Ablation studies validate the effectiveness of the hybrid architecture, and interpretability analyses highlight the decisive influence of low-frequency components in medium-to-long-term forecasting. Additionally, the Shapley value of copper price fluctuations is identified as a key driver, emphasizing its transmission effect on nickel prices.This study provides a robust methodological framework for strategic metal price forecasting, offering valuable insights for risk management in resource-driven enterprises and informing evidence-based industrial policy design by governments.

Suggested Citation

  • Jiaolong Li & Zhaoji Yu & Jichen Zhang & Weigao Meng, 2026. "Nickel price forecasting based onempirical mode decomposition and deep learning model with expansion mechanism," PLOS ONE, Public Library of Science, vol. 21(3), pages 1-26, March.
  • Handle: RePEc:plo:pone00:0341559
    DOI: 10.1371/journal.pone.0341559
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    References listed on IDEAS

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    1. Yu-Sheng Lai, 2018. "Dynamic hedging with futures: a copula-based GARCH model with high-frequency data," Review of Derivatives Research, Springer, vol. 21(3), pages 307-329, October.
    2. Liu, Shi-Miin & Brorsen, B Wade, 1995. "GARCH-Stable as a Model of Futures Price Movements," Review of Quantitative Finance and Accounting, Springer, vol. 5(2), pages 155-167, June.
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