- Nickel prices jumped 90% in London during Monday’s session to top $55,000 a metric ton.
- Prices rose on fears that Russian nickel production would be disrupted during Moscow’s invasion of Ukraine.
- Russia is the world’s third-largest nickel producer, and the metal is used in key technologies such as electric vehicle batteries.
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Nickel prices in London recorded a record rise on Monday amid growing fears that production in Russia will be halted after Moscow’s invasion of Ukraine.
The three-month nickel contract jumped 90% to trade above $55,000 a metric tonne on the London Metal Exchange, according to prices from Bloomberg. This is a new all-time high and the jump of more than $26,000 was the biggest one-day dollar gain ever.
According to the US Geological Survey, Russia is the world’s third-largest nickel producer, with approximately two-thirds of the world’s nickel production being used to make stainless steel. Nickel also plays a key role in the growing battery market for electric vehicles.
Nickel, along with the prices of oil, wheat, natural gas and other commodities, have risen sharply since Russia’s attack on Ukraine almost two weeks ago, when military action triggered sanctions against Russia by the US and its Western allies.
No sanctions have been announced against the Russian commodity complex, but the US and its allies have reportedly been in talks to limit oil exports. This highlighted concerns about possible restrictions on other goods coming from Russia.
Russian Norilsk Nickel produced the most primary nickel of any company in the world in the fourth quarter of 2021, amounting to 62,736 tons, according to S&P Global Market Intelligence, citing trade data firm Panjiva.