The big nickel short

In March 2022, the global market was hit by an unprecedented event that shook the commodities trading world and sent ripples across the financial market.

This event, known as the Nickel Crisis, was a complex and multifaceted issue that began with a sudden and dramatic surge in nickel prices and culminated in a series of controversial decisions by the London Metal Exchange (LME). The crisis was not only a significant event in the world of commodities trading but also had far-reaching implications for various sectors of the global economy, including the burgeoning cryptocurrency market.

The nickel crisis unfolded in a matter of days but has had consequences that are still being felt months later. It began with a sudden surge in the price of nickel, a key industrial metal used in a wide range of applications from stainless steel production to electric vehicle batteries. The price of nickel skyrocketed from $20,000 per ton to around $100,000 per ton, driven by a combination of factors that include geopolitical tensions, supply chain disruptions, and market speculation.

As of the time of writing, the nickel market has yet to return to normal, and the consequences of the crisis continue to be felt across the global financial landscape. The crisis has raised serious questions about the governance and risk management practices of major financial institutions and has highlighted the potential vulnerabilities of traditional financial markets.

CryptoSlate dives deep into the nickel crisis to analyze its origins, its immediate consequences, and its potential long-term implications for the broader market.