The nickel price has skyrocketed – by more than 50 percent. The London Metal Exchange halted trading. The reasons for the increase are said to be speculation and the sanctions against Russia.
The Ukraine war has led to severe upheavals on the nickel market. On Tuesday, the price of a ton of the industrial metal rose by more than 50 percent to over $100,000 at times.
Trading on the London Commodity Exchange was then suspended – possibly for several days, as the LME exchange explained. Since Monday alone, the top price has more than tripled.
Nickel price explodes: London Metal Exchange halts trading
Experts attribute the extreme price increase primarily to speculators who had previously bet on falling prices. At the same time there is a shortage of supply. The price of nickel had already risen significantly before the war. If the price then continues to rise, more and more speculators who have bet on a falling course get into trouble. They then have to buy nickel to close out their positions, which drives the price even higher.
“Some market participants who have been betting on falling prices have apparently been surprised and caught on the wrong foot by the price increases and dynamics since the Ukraine invasion by Russia,” explained Commerzbank commodities expert Daniel Briesemann.
Sanctions are also a reason for the price increase
In addition, there are expected delivery bottlenecks as a result of the Russian war of aggression in Ukraine and the sanctions imposed as a result. Russia is one of the world’s largest exporters of nickel. Nickel is particularly important for the refinement of steel products, but the element also plays a role in the manufacture of batteries for electric cars, for example.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
