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Highlights
- Nickel prices surged by a massive 65% yesterday, recording one of the most extreme moves in the history of metals.
- The current surge in the prices of battery metal is a result of escalated tension between Russia and Ukraine.
- Numerous ASX-listed nickel mining stocks witnessed a steep climb in their share prices amid skyrocketing nickel prices.
The prices of nickel surged by a whopping 65% on 8 March 2022 to reach US$80,025 per tonne. Though, prices shot up nearly 111% to US$101,365 per tonne during earlier trading sessions to record a new all-time high level. This marks one of the most extreme moves recorded in the history of metals.
Consequently, The London Metal Exchange (LME) went into a halt due to rising nickel prices as prices doubled to more than US$100,000 a tonne. After the prices went into chaotic overdrive, the LME canceled transactions and suspended trading, which is being regarded as one of the greatest crises to hit it in decades.
Notably, nickel is extensively used for the manufacturing of steel and batteries, used to power various portable devices and electric vehicles.
Good Read: Here’s why precious metals are shining amid gloom of war
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The current surge in the prices of battery metal is a result of escalated tension between Russia and Ukraine. As per the US Geological Survey, Russia is the third-largest nickel producer in the world accounting for nearly 10% of the global nickel supply.
The latest Western sanctions on Russia sparked concerns over the metal supply. The supplies of key metals including nickel are expected to remain disrupted in the international market. The prices of the key battery metal were already on fire, prior to the Russia-Ukraine tussle on the back of robust demand and dwindling inventories which are currently at their lowest level since 2019.
Must Watch: Is nickel ready to be the next hot battery metal?
Besides, the current surge in the prices is also supported by the idea of Western allies to ban Russian oil imports that have spooked the metals market.
Is nickel ready to be the next hot battery metal?
As per Australia's December Resources and Energy Quarterly Report, Australia accounts for more than 26% of the world's total nickel resources. At the same time, the country's nickel miners produce more than 200,000 tonnes of nickel per year. ASX mining stocks are witnessing a steep climb amid skyrocketing nickel prices.
To know how commodities performed in the last week click here
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Australia-based high-grade nickel producer, Mincor Resources NL (ASX:MCR) is trading 3.4% up, mid-day today, 9 March 2022. The shares of the company logged a staggering gain of over 25% in the last one month alone.
Source: Copyright © 2022 Kalkine Media®
At the same time, IGO Limited’s (ASX:IGO) shares jumped 3.2% during the initial trading session on Wednesday. IGO recorded a mind-blowing gain of 110% in the last one year.
Furthermore, Perth-based Panoramic Resources Ltd (ASX:PAN) is trading at A$0.31, up 2.4% on the previous day. The miner has logged a gain of more than 9% in the last five days.
Must Read: NIC & MCR: Two ASX stocks in spotlight as nickel prices shoot up
