The LME nickel futures price surged by US$2,022/ton last Friday (March 4), closing at US$28,919/ton. The highest intraday hit US$30,295/ton, a new high since 2008. The spot price also soared by US$2,027, reaching US$29,609/ton.

The nickel price has risen by US$4,558 in total last week, an increase of 18.8 in a single week, the fifth hike for five weeks. The cumulative increase this year has totaled US$8,162, a growth of 39.3%.

The monthly average nickel price this month reached US$27,138/ton, higher than the US$24,008/ton in the previous month.

Meanwhile, LME’s market inventory of nickel dropped by 702 tons, coming to 77,082 tons. The decrease in March has amounted to 3,012 tons.

According to market participants, Russia, whose nickel supply accounts for 7% of the global total, is facing financial and shipping sanctions after its invasion of Ukraine, which aroused market concerns on possible disrupted supply, leading to a continuous surge in nickel prices.

Besides, the continued drops in global refined nickel inventories also caused nickel prices to soar. Market participants said that the future nickel prices depend on the development of the Russia-Ukraine military conflict.