Steel producers listed on the Stock Exchange of Thailand (SET) saw their shares rise on Wednesday following a dramatic surge in nickel prices, which froze nickel trading on the London Metal Exchange (LME).
As a result of international sanctions against Russia, a key metal supplier, for its invasion of Ukraine, nickel prices doubled to record high over US$ 100,000 per tonne in a matter of hours on Tuesday. Nickel is a key material of stainless steel.
The skyrocketing prices prompted the LME to halt nickel trading at least until next week.
“The current events are unprecedented,” LME said in a statement.
LME is unlikely to resume nickel trading earlier than March 11, according to a statement. The resumption date will be announced by 2 pm on the prior business day, it said.
On the Thai market, steel maket POSCO-Thainox Plc (INOX) gained 15 per cent to its 10-month high of 1.53 baht by midday. INOX is a cold-rolled steel manufacturer located in Rayong Industrial Park.
Apart from INOX, Thai-German Products Plc (THPRO) and Permsin Steel Works Plc (PERM) also rose by 8.5 and 7.8 per cent, respectively.
Nickel is also a component of lithium-ion batteries, which are featured in electric vehicles (EVs). The event raised concern to the auto industry that higher nickel prices will undermine earnings of EV makers.
