First of all, for the vast majority of nickel resources in the world, Russia and Ukraine have large reserves, so in the event of war, these mineral deposits will inevitably be seriously affected and affected. Especially for Russia, its own related mineral reserves are very rich. However, due to war conflicts and sanctions imposed on Russia by some western developed countries, Russia and other projects cannot be shipped out in time, which will lead to a large number of stocks that cannot be transported and supplied, and then there will be a substantial shortage in the market. As a resource-rich mineral country, if Russia has been sanctioned by western countries, the price of corresponding resources will definitely soar.
Secondly, the direct cause of the sharp rise in nickel price this time is that the futures market is forced to empty. In the London metal trading market, the price of nickel even soared, and the highest price rose by 100% in one day, which is unimaginable. One of the most important reasons is that some financial institutions are constantly doing more, which makes those short-selling institutions frustrated. Because in the process of futures trading, if there is a sharp rise, and the futures are not enough at the time of delivery, then it will cost a lot. Under such circumstances, if the futures price rises sharply, it will be a disaster for these short-selling institutions.
Finally, panic and snapping up at the top of the market will also cause the price of nickel to rise to a certain extent, because due to geopolitical conflicts and the constant fluctuation of the whole market sentiment, there will be a serious speculative upsurge in the market, and those futures with amazing increases will have relatively large price fluctuations.