What’s going on with Nickel?

Last week, nickel trading on the LME (base metals exchange) was halted. This happened after the stock price exploded. The nickel price, which in previous weeks was trading at a level of around €24,000 per ton, shot up to over €70,000 and beyond. One explanation is an impending shortage of nickel due to sanctions against Russia. This country accounts for over 20% of the global production of this base metal. Nickel is a component of stainless steel (SS), among others. Nickel is also used in electric car batteries.

However, what caused the biggest rise was a short position by a Chinese bank. Reportedly worth some 8 billion. A shortseller speculates on a decline, but so in this case the price actually went up. To limit the damage, shortsellers start buying additional, but that then causes the price to rise further.

Trading is expected to resume next week. At what price the nickel price will then reopen is currently uncertain, and an exciting question for many traders.

We like to keep you informed in these turbulent times.