The unprecedented jump in nickel prices on the London Metal Exchange (LME) has hurt the operations of metal producers and also of industry companies in China that make nickel-related products, in a show of how this movement reverberates through the production chain. of the commonly used component.
Over the past week, more than six Chinese companies – most of them nickel producers and suppliers – have sent warnings to their customers and investors about one-off production problems, price hikes or a slowdown in the ability to accept or fulfill orders.
The prices of nickel, an important component used in stainless steel and in electric vehicle batteries, soared last week, in a framework of hedging the positions of investors who were short in the metal (“short squeeze”).
On Tuesday (14), nickel contracts for three months hit US$ 100,000 a ton, leading the LME to suspend the negotiations that took place that day.
As of Monday’s close, contracts were at $48,078, still nearly double the level seen a week earlier. The LME is yet to announce when nickel trading will resume.
The sharp rise in prices was caused in part by Russia’s invasion of Ukraine. It affects different companies. In Australia, a metals producer said the purchase of a nickel miner for $800 million could be delayed, given the jump in metal prices.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
