Nickel has long had a reputation for being among the most volatile industrial metals, but its biggest daily jump in a decade has left even the most seasoned traders astonished.
The metal surged as much as 13%, or almost $2,000 a ton, extending a rally over the past month triggered by speculation that top producer Indonesia might bring forward a ban on nickel ore exports. While the price eased after the nation’s mining ministry denied that any policy changes are imminent, it closed 7.2% higher in London to the highest in more than four years.
“You can see that the market is barely trading now because people just don’t know what to do,” said George Daniel, a hedge fund manager at Red Kite who’s been trading metals since 1993. “It could come off from here, but everyone’s just waiting to see if China comes in and buys it again.”
Read more about nickel surging on the Bloomberg website HERE
