But it was not strange to see the price of nickel increase so rapidly because Russia is the largest exporter of nickel in the world. And panic quickly spread through the metal markets soon after Russia’s invasion of Ukraine. This caused the price to skyrocket at the start of March. There was a great deal of unrest because prices increased both from a procurement and sales perspective.
Why was trading in the nickel market stopped?
The London Metal Exchange even temporarily stopped trading to avoid a situation where traders would not be able to meet their margin calls, because this would be accompanied by ‘various bankruptcies’.
Zinc and aluminium also experienced massive price increases. Sales Director, Enzo Panella explains: “Some of the quotes we issued were only valid for a period of 24 hours. Prices were changing on a daily basis. Thankfully, the ship has now steadied somewhat.”