While sometimes overlooked, base metal commodities that are used in hundreds of industrial applications around the world have surged at a record pace in the last week.
Commodities such as tin, zinc, cobalt, aluminium and nickel have all risen greatly in the last week of trading sparked by supply concerns due to the ever-escalating conflict in Eastern Europe.
Nickel in particular has risen to an all time high on the London Metal Exchange. The metal not only has industrial applications but is also a key component in the development of electric vehicle batteries, which has impacted the price action two-fold.
Low liquidity in the contract and seller hesitancy caused as much as a 90% price increase in the metal price to $55,000 per tonne which breached it’s previous 2007 record.
With the conflict not anticipated to slow down any time soon, buyers will be looking to lock-in as much (non-Russian) supply as possible which will more than likely cause a further increase in these base metal prices.