[ad_1]
MANILA – Nickel prices rose to their highest level in nearly a year on Wednesday on supply concerns after the Philippines’ top nickel ore producer suspended operations at a mine following a coronavirus outbreak.
The Philippines is the leading supplier of nickel ore to China, the world’s largest user of the metal.
The most-traded December nickel contract on the Shanghai Futures Exchange (ShFE) rose as much as 5.7 percent to 125,670 yuan ($ 18,748.60) a ton, its highest level since November 11.
Three-month nickel on the London Metal Exchange rose 2.5 percent to $ 16,310 a tonne, a level not seen since Nov. 7.
Nickel Asia Corp said it has suspended operations at its Hinatuan mine, one of four in the Philippines, until Nov. 10 after 19 employees tested positive for the virus.
The mine contributed 11 percent of the company’s ore sales volume last year.
“This will make the price of nickel skyrocket,” said a Singapore-based nickel trader. “Pandemic situations pose a great threat to the supply chain. It can explode very quickly.”
Nickel ore supplies have been tight in China since leading producer Indonesia banned exports from January.
Mining, nickel prices, nickel ore, Philippine nickel production, Philippine mine closures, COVID-19 outbreak, Benguet mines,
[ad_2]