Exchange prices for nickel on Thursday reached 11-year highs at $27,970. Metal prices have been on the rise over the past few days, but today the uptrend picked up.
The sharp rally in nickel prices is attributable to geopolitical risk. Notably, Russian Norilsk Nickel accounts for a large chunk of global nickel supplies, about 22%. The market is fearful that shipments of metal of Russian origin will be disrupted or halted. Amid the existing deficit, that formed during the pandemic, this is another blow to consumers.
The technical outlook for nickel trading implies a further increase to $28,500 and higher.