Nickel Rally Sparks Emergency MeasuresTheLondon Metals Exchange has today introduced emergency measures to halt the tradingof Nickel. The LME took the action in response to the dramatic rally in priceswhich has seen the futures market soaring to record highs of over $100,000 pertonne, with price having doubled in the last 24 hours.Fearsof a supply shortage in Russia, which accounts for almost 10% of global supply,sparked the rally. With Nickel supply having already tightened over the courseof the pandemic and the supply chain issues which blew up into Q3 last year,the conflict in Ukraine has become a critical issue.Theknock on effects for producers and manufacturers using the metal will besevere. Given the spiralling inflationary environment and the supply-chainissues already facing the manufacturing sector, outsized price spikes in rawmaterials is yet further bad news.TechnicalViews NICKEL(Spot)Theweekly chart shows the velocity of the move in Nickel. Price had been grindinghigher within a shallow, narrow bullish channel over last year and up untillast week. You can see how far the market has advanced in the last fortnight.With the war in Ukraine raging on, the near term outlook remains bullish fornow as price now trades almost triple what it was at the start of the year.
Source: Tickmill
