Supply concerns spark extreme market volatility in commodity markets(1)

With the escalation of the crisis in Ukraine, the volatility of the international commodity market has intensified significantly, and there have been more extreme market conditions recently. Since the beginning of this week, the price of three-month nickel on the London Metal Exchange has doubled for two consecutive trading days, the price of Brent crude oil in London has hit a nearly 14-year high, and the price of natural gas futures in Europe has risen to an all-time high.

Analysts pointed out that this week is likely to be the "most volatile week on record" in the commodity market, and the impact of the Russian-Ukrainian conflict on the economy may be expanded by rising commodity prices.

The supply crisis superimposed the "short squeeze" operation to boost the price of nickel "soaring"

The price of three-month nickel on the London Metal Exchange exceeded $50,000 a ton on the 7th. After the market opened on the 8th, the price of the contract continued to soar, once exceeding $100,000 per ton.

Fu Xiao, head of global commodity market strategy at BOC International, said in an interview with Xinhua News Agency that the rise in nickel prices to a record high was mainly due to the superimposed "short-squeeze" operation of supply risks.