Nickel trading on the London Metal Exchange (LME) rose 1.72% over the past two days, reaching US$21,450 per ton. On Monday, September 5, 2022, the nickel price was still at US$21,080 per ton. However, transactions on Tuesday, September 6, 2022, saw the price of nickel for the next 3-month contract traded at US$21,450 per ton.
This price represents a US$370 difference compared to the previous day's closing price. The nickel price increase is due to concerns over supply and dwindling inventories, particularly regarding Russian supply. Russia supplies approximately 10% of the world's nickel needs. Furthermore, the Russian invasion of Ukraine has fueled the rise in global nickel prices.
Nickel is a key component in stainless steel production and a crucial material in electric vehicle batteries. Currently, the Indonesian benchmark nickel price stands at US$22,504 per ton. Indonesia holds the world's largest nickel ore reserves.
The nickel price at the end of last year was US$20,190 per ton, but as of Tuesday, September 6, 2022, it has increased by 5.87% year-to-date (YTD).