After an extensive three-year decline, world nickel prices are increasing once again in Cuba. Used in stainless steel production, nickel is Cuba’s number one export commodity.
After Indonesia restricted unprocessed ore exports and the European Union and the US imposed economic sanctions against Russia, the price of nickel is rising because of supply concerns. The London Metal Exchange price for three-month delivery rose to $16, 230 per metric ton. This is an 11-month high, which is up more than 20 percent since early January. Industry insiders are claiming that this is the very definition of a “bull market.”
The Toronto-based analyst Donald Rumball, thinks the current upswing in nickel prices won’t be long-lasting because Russia will be able to sell to China, Indonesia, Vietnam despite the imposed sanctions.