Nickel prices jumped to the highest level in almost nine months after political violence in New Caledonia disrupted production in the French overseas territory that holds some of the world’s biggest deposits of the mineral. Futures contracts for nickel, which is a crucial element in electric vehicle batteries and steelmaking, jumped almost 7 per cent on the London Metal Exchange to $21,150 a tonne, before falling back slightly to trade 5 per cent higher.
He added that traders had been generally “downbeat” on nickel, which meant there was “scope for people to get caught out” by sudden price increases. Nickel prices have dropped about 32 per cent from about $31,000 at the start of 2023 as Indonesia, the biggest producer, increased supply and demand weakened due to weaker than expected sales of electric vehicles.