Last month, nickel prices rose to multi-year highs, as concerns about supply disruptions due to geopolitical conflict clouded the already tight market. Benchmark nickel prices rose 1.6% to $24,740 per ton, after earlier hitting its highest level since August 2011. Today, nickel on the London Metal Exchange climbed 4.8% to $26,300 per ton, its highest price since May 2011.
Despite the global semiconductor chip shortage, electric vehicle (EV) sales in core markets such as China, Europe, and the United States saw a rise of around 130% to more than three million units in 2021, thereby creating strong demand for nickel. Ten percent of the demand is for EVs and about 70% is for the stainless-steel industry, which is set to play a crucial role in energy transition.
