LONDON- Nickel prices posted its biggest weekly gain in seven months on Friday as expansion of Western sanctions against Russia triggered covering of bets on lower prices of the metal.
Three-month nickel on the London Metal Exchange was up 0.8 percent at $17,525 a metric ton after touching its highest since Nov. 10 at $17,600. The metal used in stainless steel and electric vehicle batteries is on course for a 7 percent weekly gain, its largest since July.
“It’s all about the sanctions risks. Everyone was incredibly short on nickel, so potential risk to supply (from Russia) caused this reaction,” said Dan Smith at Amalgamated Metal Trading.
As Russia, a major producer of refined nickel and aluminum, is approaching the two-year mark of its invasion of Ukraine on Feb. 24, the US EU and Britain expanded sanctions lists against Moscow. They made no mention of the two metals.
LME aluminum hit a one-month low of $2,213 after the US released its list and was last down by 0.6 percent to $2,184.
Copper lost 0.3 percent to $8,560 after touching $8,608.50 in the previous session for its highest since Jan. 31. The metal used widely in construction has risen by almost 5 percent since Feb. 9. – Reuters
