Nickel soars to document of greater than US$100,000 per tonne over Russian manufacturing issues

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LONDON: The value of nickel skyrocketed to a document excessive on Tuesday (Mar 8) over issues about Russian manufacturing because the Ukraine battle has rocked commodity markets.

The metallic, which is used to make chrome steel and batteries for electrical automobiles, briefly traded at US$101,365 per tonne, almost double its 2007 peak.

It later eased to US$82,195.

Russia’s invasion of Ukraine and Western sanctions in opposition to Moscow have brought on turmoil within the markets, sending the costs of all the things from oil to gasoline to aluminium to wheat hovering, whereas equities have fallen.

Russia is the world’s third-biggest producer of nickel, famous Benjamin Louvet, analyst at OFI Asset Management.

“For now, the main producers of metals in the country have been spared by sanctions, but many companies in this sector are headed by oligarchs close to Vladimir Putin,” Louvet stated.

“The impact of such sanctions could be significant, as 37 per cent of Russian exports go to the Netherlands and 16 per cent to Germany,” he stated.