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LONDON. — Nickel prices resumed their free-fall on Monday, with the benchmark three-month contract falling 15 percent to hit another new trading limit.
The price hit US$31,380 a metric ton as it opened for trade on the London Metal Exchange, according to Refinitiv data.
The 145-year-old exchange, which still has some open outcry trading, has had a wild couple of weeks of nickel trading, with price surges, technical glitches and trading suspensions.
Commodity prices jumped earlier this month on supply fears related to Russia’s invasion of Ukraine, with a barrage of Western sanctions raising disruption fears. Russia is a key producer and exporter of metals and grains and is the world’s third-largest producer of nickel — a key ingredient in stainless steel and a component in lithium-ion batteries.
On March 8, nickel prices more than doubled in a matter of hours. The price climbed above US$100 000 a metric ton as China’s Tsingshan Holding Group, one of the world’s top producers, bought large amounts to reduce its short bets on the metal.
Trading was halted on the LME as the move added to a significant price rally. On Wednesday last week, the LME attempted to resume nickel trading after the rare shut down. — CNBC.
Online Reporter