Fitch Solutions on Monday said soaring prices of nickel could be beneficial for other producers such as the Philippines and Indonesia as the tension between Russia and Ukraine drags on.
The ongoing war has disrupted the production of nickel from Russia, which propelled prices to new highs. Russia is among the biggest producers of the metal globally.
Nickel soared to as much as $101,365 per ton on March 8, before easing back to $82,195.
“Soaring global nickel prices will be highly beneficial to other major producers, such as Indonesia and the Philippines. In those countries, exports may be even more profitable if the ongoing crisis has further impact on EM currencies,” Fitch Solutions said in a statement.
Nickel mine production is also likely to pick up as prices rise, it said.
Fitch Solutions said the disruption in Russian production could prolong, which could impact the export of nickel and aluminum in the coming months.
“Prices for each metal are subject to considerable uncertainty, but we are expecting them to remain above pre-invasion levels for both metals in the short term at least,” it said.
Nickel is mainly used to make stainless steel and batteries for electric vehicle.
