Crazy rising nickel
The London metals market on Tuesday stopped quoting nickel, and its price, which had already broken its record on Monday, rose above $ 100,000 a tonne on Tuesday morning due to fears over Russian supplies. Russia is also a major producer of nickel, along with Indonesia, the Philippines, New Caledonia, Australia and Canada.
“Following an unprecedented rise in three-month nickel prices overnight, LME has decided to suspend trading for at least the entire day. [de mardi] ⁇, The London Metal Exchange said in a statement. At the beginning of the year, the price was still over $ 20,000.
As all metals have been on the rise since the beginning of the week, nickel has been used in stainless steel design, but also in electric vehicle batteries, which has increased its demand in recent years.
Jim Reid, an analyst at Deutsche Bank, commented that the sharp rise in nickel prices since the beginning of the conflict due to Russia’s importance in metal production has triggered the movement for forced closures of short sales.
Speculators who bet that nickel should fall in price are now forced to buy the metal, forcing them to close their position and fulfill the terms of the deal, artificially raising prices and other negative bettors. In a situation like this, “There is no limit to what prices can reach because of the lack of market size”Warn Marex brokers.
As a result, in three sessions, when LME stopped trading on Tuesday, prices rose 197% to $ 80,000 per tonne.