what the price spike means for businesses and consumers Business


Nickel is a stark example of how the war in Ukraine forced a rapid revaluation of base metal prices. It soared as high as 90% intraday on Monday, one of the most extreme moves ever recorded on the London Metal Exchange. It’s up 166% so far this year.

Used to produce lithium-ion batteries and stainless steel, the metal had already been pushed higher last week as shipping companies and banks cut ties with Russia – one of the world’s biggest suppliers – which added to a historically tight market.

“Prices are likely to remain highly volatile, until the true impact on supply becomes clearer and prices can begin to settle at a new equilibrium,” Morgan Stanley analysts said.


Aluminum prices hit a record high on Monday, up 5.8%, before falling back in subsequent trading. Global manufacturers, especially those in the automotive sector, are dependent on Russian supply, which means the light metal is up 43% so far in 2022.

Used in everything from aircraft bodies to cans, many of the world’s largest aluminum producers are based in Russia, including the second-largest Rusal.

Rusal, founded by Oleg Deripaska, said last week that its factory in Mykolaiv in Ukraine had halted shipments – that alone could take a significant chunk out of the market.

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This notice was published: 2022-03-07 19:56:20

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