February 23, 2022

Tensions over possible sanctions on Russia led to the LME Nickel 3M contract trading over $25,000/mt yesterday for the first time since 2011. Nickel prices have rallied this year as demand has remained high and stocks and have dwindled. The metal, which is used to make stainless steel and batteries for electric vehicles, could see higher prices if exports from the region slow further due to the Ukrainian crisis. Russia is the world’s third largest producer of nickel. 

Prices for nickel might also stay elevated if warehouse stocks continue to fall. Warehouse stocks are considered a measure of the balance of supply and demand.  LME Nickel stocks were 81,300 mt on Wednesday, the lowest level since November 2019. 

After the LME close on Tuesday, US President Biden sanctioned several Russian banks and people close to Russian President Vladimir Putin. No Russian metals producers were sanctioned.  (2/23/22)

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