Nickel price soars

Nickel price soars

LONDON (Reuter): The world price of nickel soared yesterday in a panic about supply from Russia after reports of explosions and power shortages at a huge smelter in Siberia.

At US$9,575 a ton on the London Metal Exchange the metal was up more than 25 percent in a week and a blistering seven percent in just a few hours of yesterday's trading.

Nickel -- at its highest price since September 1990 -- was already in hot demand as a key component of stainless steel in a rebounding global economy. This was before the latest reports of trouble at Siberia's Norilsk mining and smelter complex.

Nickel dragged up London prices on other industrial metals. Copper hit a new four-year high of $2,955 per ton but then eased. Aluminum also rose to $1,950 per ton.

Gold was fixed in London yesterday at $377.30 per ounce, its lowest in 16 weeks.