Like many other commodities, nickel became a victim of the supply concerns brought on by the Russia-Ukraine war, as a price spike on the London Metal Exchange earlier this month led to the suspension of trading in the metal for more than a week.
Prices on an already tight nickel market had rallied over concerns from Russia, wrote Michael Widmer, commodity strategist at BofA Securities, in a note early this week. “This ultimately led to a short squeeze.” At the time, the LME said all clearing members had met their margin requirements to the “LME Clear” in full. Margins are money investors must put up to be able to trade and hold futures contracts.
The price limit was then expanded to 8% for Thursday, which was promptly reached, and the LME expanded the limit again to 12% on Friday.Why did prices spike? Russia’s invasion of Ukraine on Feb. 24 led to expectations for supply disruptions for a variety of commodities, including oil and metals. Nickel is a metal that’s mainly used to make stainless steel and other alloys stronger. Nickel alloys are also used in making rechargeable batteries for portable computers, power tools and hybrid and electric vehicles, according to Geology.com.
I'm a nude model, rate my photos)
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Cointelegraph - 🏆 562. / 51 Read more »
Source: FXStreetNews - 🏆 14. / 72 Read more »