A ton of nickel jumps to 100 thousand dollars, then falls to 82 thousand
The price of nickel hit a record high today, Tuesday, due to concerns about Russian production due to the Russian military operations in Ukraine.
A ton of nickel - used to make stainless steel and electric vehicle batteries - was trading at $101,365 for a brief period on Tuesday, nearly double the price it recorded at its 2007 peak. It later fell to $82,195.
The rise in the price of nickel prompted the London Metal Exchange to stop trading.
"After the additional unprecedented overnight rises in the price of nickel in three months, the London Metal Exchange has decided to stop trading, at least, for the rest of the day," the exchange said in a brief statement.
Russia's invasion of Ukraine and Western sanctions against Moscow have disrupted markets, driving up prices -- from oil to gas to aluminum and wheat, while stocks tumbled.
Russia is the third largest producer of nickel in the world, said Benjamin Lovet, an analyst at OFI Asset Management.
He added, "For the time being, the sanctions have not affected the country's main mineral producers, but many companies in the sector are run by wealthy and influential figures close to Russian President Vladimir Putin."
"The impact of sanctions of this kind could be significant, as 37 percent of Russian exports go to the Netherlands and 16 percent to Germany," he added.
Follow our latest local and sports news and the latest political and economic developments via Google news