Nickel hits its highest level since 2011 on Russia unrest, tight supply

LONDON: The price of nickel, a key component in stainless steel and electric car batteries, hit the highest level in more than a decade Monday on Russia-Ukraine tensions and tight supplies.

Russia is one of the world's largest producers of nickel plus other key commodities such as oil, aluminium and palladium.

Nickel forged $24,610 per tonne in trading Monday — the highest level since 2011.

The industrial metal later cooled to stand at $24,380 per tonne on the London Metal Exchange, a gain of one percent compared with late Friday.

Marex broker Al Munro said nickel was "benefiting from the threat to Russian production" in an already tight market with demand up as economies reopen from pandemic lock downs.

Nickel's price has jumped 18% since the start of the year.

"The Ukraine crisis continues to hang over metals prices," said Commerzbank analyst Daniel Briesemann.

However, he cautioned that aluminium and palladium prices had not risen to the same extent as nickel.

"The nickel market still appears to be very tight" with stockpiles falling, Briesemann said.