Nickel prices in China peaked after metal trading was halted in London and oil indices rose in response to the US ban on Russian oil and gas imports.
Nickel prices rose 17% on Wednesday, reaching a peak of Rmb267,700 (about $ 42,400) per tonne on Wednesday, and their ceiling is for daily increases. A Bad bet Launched by a Chinese metal tycoon raised prices above a record $ 100,000 a tonne on Tuesday, one of the most extreme price movements in the 145-year history of the London Metal Exchange.
Metal prices have already risen following Putin’s invasion of Ukraine. Russia will supply almost 13% of the total global nickel mining capacity in 2021, according to consulting firm Rystad Energy.
The surge in nickel futures has taken a hit for Chinese companies that rely on metal as a key material, with battery maker Huayou Cobalt and auto parts maker Hengli Industrial both falling at a maximum of 10% in Shanghai and Shenzhen, respectively.
Elsewhere in commodities markets, the Brent crude, the international index, rose 2.9 percent to $ 131.64 a barrel, while the American marker West Texas Intermediate jumped 2.4 percent to $ 126.68.
Both contracts closed Tuesday’s session up more than 3 percent after President Joe Biden Imports are prohibited Of Russian oil and gas into the U.S. The move is matched by a halt to Russia’s Russian oil imports, while the EU has decided to reduce Russian gas imports by two-thirds within a year.
“Russian oil will no longer be acceptable in U.S. ports and the American people will land another strong blow to Putin’s war machine,” Biden said.
The US-UK import ban marks the latest escalation in sanctions on Russia over its invasion. The S&P 500 closed Tuesday at its lowest level since June 2021, when commodity prices soared amid fears of continued large-scale disruption.
European natural gas contracts have risen more than 200% due to fears that Russian supplies could be halted. Disruptions in wheat exports from Ukraine and Russia caused the future of wheat to rise by almost two-thirds.
Paul McTaggart, head of the research department at Australia and New Zealand at Citi, said commodity markets had “changed substantially” as the bank raised its 2022 forecast for Brent by 24% to $ 89 to reflect expectations of continued upward pressure. He added that “in the longer term, a change in NATO-Russia relations could have far-reaching effects, including on relations with China.”
In equities, Asian markets were largely low, with Hong Kong’s Hong Kong down 2.2% and China’s CSI 300 down 1.3%.
Futures have led European stocks to higher openings, with the Euro Stoxx 50 expected to rise 1.5% and the FTSE 100 expected to rise 1.4%. The S&P 500 was expected to rise 0.4% after closing at 0.7% on Monday.
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Nickel surges in China and oil rises after US and UK ban Russian imports Source link Nickel surges in China and oil rises after US and UK ban Russian imports