Nickel prices rise amid New Caledonia unrest
May 22, 2024
Nickel prices have risen to the highest levels in nine months following pro-independence protests in French sui generis collectivity New Caledonia, reports The Financial Times. The events – which have led to political unrest and at least four deaths – have disrupted production in the archipelago, which houses some of the largest nickel deposits globally.
Nickel futures contracts rose to almost 7% on the London Metal Exchange to $21,150 a tonne before falling again to trade 5% higher.
The Financial Times noted that this price rise coincided with the release of a report by the International Energy Agency predicting an increased demand for nickel and other minerals necessary to clean energy technologies.
French President Emmanuel Macron declared a state of emergency in New Caledonia, a cluster of islands between Fiji and Australia. The territory produces about 6% of the group’s nickel.
Nickel prices have dropped about 32% from about $31,000 at the start of 2023, reported The Financial Times, as the largest producer (Indonesia) increased supply amid weakened demands.
Prices for aluminium and copper were also reported to have increased by more than 1%.
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