BSX Day to Day SP discussion, page-2354

Nickel futures rallied past $24,800 per tonne, the highest since May of 2011, as supply woes intensified amid aggravating tensions between Russia and the West over Ukraine. Russia recognized the independence of Ukraine’s breakaway regions and ordered to send more troops to Luhansk and Donetsk, which triggered harsher Western sanctions and broad condemnation. Being a major producer of nickel, sanctions on Russian companies could lead to major supply disruptions and to further hikes in raw material prices. Meanwhile, analysts said Norilsk Nickel, who produces 7% of world output, was unlikely to be hit by sanctions that target minority shareholder Rusal because these were expected to hit shareholders with majority stake only. Finally, nickel inventories in LME-registered warehouses have dropped 69% since April to 83,328 tonnes as the demand from the stainless steel and battery sectors remains strong.