Signal Nickel price jump of 270% led the LME to suspend trading

Summary

The report explains that the war in Ukraine made prices for food, fuel, fertiliser and other commodities high and volatile. Nickel is the standout case, with its price jumping 270% and the London Metal Exchange halting trading as a result. The report presents this as an example of geopolitical tension sending shocks through global supply chains into markets. Many organisations are now trying to source materials and services at home to reduce exposure to geopolitical risk and to support domestic industry. The report also expects prices of minerals needed for clean energy technologies to rise as countries decarbonise. The report also describes government measures to make critical supply chains more resilient, such as the Critical Imports and Supply Chains Strategy published in January 2024.