Nickel prices soared to a record $101,365 per ton on on Tuesday due to concerns over Russian production as the conflict in Ukraine rattles commodity markets.
Metal, which is used to make stainless steel and batteries for electric vehiclesbriefly traded at $101,365 per tonnearly double son high of 2007. It then fell to $82,195.
Russia invasion of Ukraine and Western Sanctions against Moscow has caused turmoil in markets, send prices of everything from oil and gas to booming aluminum and wheat, while stocks tumbled.
Russia is the world’s third most grand producer of nickel, noted Benjamin Louvet, the analyst at OFI Asset Management.
“For now, the main producers of metals in the country has been spared sanctions, but many companies in this sector is run by oligarchs close to Vladimir Putin,” Louvet said.
“The impact of these sanctions could be significant, since 37% of Russian exports go to the Netherlands and 16% to Germany,” he said.
London suspends nickel trade after record spike
The London Metal Exchange (LME) on Tuesday suspended trade in nickel after the base metal has reached the record peak.
“Following further unprecedented overnight increases in the three-month nickel pricele LME has decided to suspend trading minimum forum, the rest of today,” he said. in A declaration.
Nickel prices in London more than doubled to cross the $100,000 markton level for the first never, like the tension in Eastern Europe showed no signs of chilling and increasing sanctions against Russia stirs up fears of a disturbance in to supply. Three month nickel on the London Metal Exchange soared 71% to $82,250 a year ton at 7:55 a.m. GMT. Earlier in the sessionprizes shot up nearly 111%, at a record $101,365.
“Fear of shortages trigger panic buying,” said Vijay L Bhambwani, head of research at Mumbai-based Equitymaster.
Russia provides world with around 10% of its nickel needs, mainly for use in stainless steel and electric vehicle Battery.
“As the penalties against the russians got tricked out last week with unprecedented speedinvestors found themselves removing all Russian production from their supply and demand protrusions and marking up price accordingly”, ED&F Man Capital Markets analyst Edward Meir said in a rating.
Western nations impose sanctions on Moscow to isolate it from global trade and are now considering a ban on Russian oil imports, news of which pushed crude prices up to 14 -year high on Monday. The logistical disruptions have also choppy commodity markets.
Inventories of nickel in LME-registered warehouses stand at 76,830 tonnes, their lowest level since 2019.
“I think the market will cool off … There are several of them of increase in supply to come in 2022,” said Steven Brown, an independent consultant based in Australia.
This would include a lot of new nickel matte production from Indonesia to drive prices drop towards the end of 2022 it added.
Prices of other industrial metals also jumped up, with reference zinc and tin on the LME rising for record tops of $4,896 per ton and $51,000 per tonrespectively.
Fundamentals
* LME copper rose 2.5% to $10,542.5 yr while aluminum jumped 3.9% to $3,886, lead gained 8.2% to $2,663, zinc jumped 9.1% to $4,486 and tin was up 7% higher at $50,000.
* The most traded April copper contract on the Shanghai Futures Exchange ended in the day trading down 0.5% to 74,000 yuan ($11,716.28) a ton previously hit a peak since May 2021.
* Aluminum ShFE fell 3% to 23,105 yuan, zinc gained 7% to 28,195 yuan, lead rose 2% to 15,970 yuan and tin climbed 12% to 391,400 yuan. Nickel hit a limit of 15%, having touched a record high of 228,810 yuan per ton in early trade.
* Wuxi Stainless Steel Clearinghouse in China shut down trading for nickel products from March 8 pending further notice and raised trading limits for both stainless steel and nickel products since the settlement on March 7.
* The LME imposes an offset limit and a delivery deferral mechanism for physically settled base metal contracts with immediate effectThat said on Monday, referring to the Russian-Ukrainian conflict and tensions in the market.
Nickel prices soared to a record $101,365 per ton on on Tuesday due to concerns over Russian production as the conflict in Ukraine rattles commodity markets.
Metal, which is used to make stainless steel and batteries for electric vehiclesbriefly traded at $101,365 per tonnearly double son high of 2007. It then fell to $82,195.
Russia invasion of Ukraine and Western Sanctions against Moscow has caused turmoil in markets, send prices of everything from oil and gas to booming aluminum and wheat, while stocks tumbled.
Russia is the world’s third most grand producer of nickel, noted Benjamin Louvet, the analyst at OFI Asset Management.
“For now, the main producers of metals in the country has been spared sanctions, but many companies in this sector is run by oligarchs close to Vladimir Putin,” Louvet said.
“The impact of these sanctions could be significant, since 37% of Russian exports go to the Netherlands and 16% to Germany,” he said.
London suspends nickel trade after record spike
The London Metal Exchange (LME) on Tuesday suspended trade in nickel after the base metal has reached the record peak.
“Following further unprecedented overnight increases in the three-month nickel pricele LME has decided to suspend trading minimum forum, the rest of today,” he said. in A declaration.
Nickel prices in London more than doubled to cross the $100,000 markton level for the first never, like the tension in Eastern Europe showed no signs of chilling and increasing sanctions against Russia stirs up fears of a disturbance in to supply. Three month nickel on the London Metal Exchange soared 71% to $82,250 a year ton at 7:55 a.m. GMT. Earlier in the sessionprizes shot up nearly 111%, at a record $101,365.
“Fear of shortages trigger panic buying,” said Vijay L Bhambwani, head of research at Mumbai-based Equitymaster.
Russia provides world with around 10% of its nickel needs, mainly for use in stainless steel and electric vehicle Battery.
“As the penalties against the russians got tricked out last week with unprecedented speedinvestors found themselves removing all Russian production from their supply and demand protrusions and marking up price accordingly”, ED&F Man Capital Markets analyst Edward Meir said in a rating.
Western nations impose sanctions on Moscow to isolate it from global trade and are now considering a ban on Russian oil imports, news of which pushed crude prices up to 14 -year high on Monday. The logistical disruptions have also choppy commodity markets.
Inventories of nickel in LME-registered warehouses stand at 76,830 tonnes, their lowest level since 2019.
“I think the market will cool off … There are several of them of increase in supply to come in 2022,” said Steven Brown, an independent consultant based in Australia.
This would include a lot of new nickel matte production from Indonesia to drive prices drop towards the end of 2022 it added.
Prices of other industrial metals also jumped up, with reference zinc and tin on the LME rising for record tops of $4,896 per ton and $51,000 per tonrespectively.
Fundamentals
* LME copper rose 2.5% to $10,542.5 yr while aluminum jumped 3.9% to $3,886, lead gained 8.2% to $2,663, zinc jumped 9.1% to $4,486 and tin was up 7% higher at $50,000.
* The most traded April copper contract on the Shanghai Futures Exchange ended in the day trading down 0.5% to 74,000 yuan ($11,716.28) a ton previously hit a peak since May 2021.
* Aluminum ShFE fell 3% to 23,105 yuan, zinc gained 7% to 28,195 yuan, lead rose 2% to 15,970 yuan and tin climbed 12% to 391,400 yuan. Nickel hit a limit of 15%, having touched a record high of 228,810 yuan per ton in early trade.
* Wuxi Stainless Steel Clearinghouse in China shut down trading for nickel products from March 8 pending further notice and raised trading limits for both stainless steel and nickel products since the settlement on March 7.
* The LME imposes an offset limit and a delivery deferral mechanism for physically settled base metal contracts with immediate effectThat said on Monday, referring to the Russian-Ukrainian conflict and tensions in the market.