Nickel has enjoyed a solid price spurt in recent months, fuelled by fears over heavy supply disruptions after Indonesia — home to around a fifth of total nickel production — placed an export ban on nickel ore back in January.

The move was prompted by a 2009 law calling for more domestic refined output, a situation which is significantly hampering Chinese production of nickel pig iron (NPI) as ore shipments dry up.  As Indonesian refining capacity could be described as inadequate at best, nickel prices have shot 35% higher since the turn of the year, striking 14-month peaks above $18,700 per tonne in the process and looking poised for another move skywards.

Meanwhile, the evolving political situation in Ukraine is also adding pressure to the nickel market, and analysts reckon that a backdrop of escalating trade restrictions on Moscow from the West could add fresh ammunition for the metal to surge still higher.

• [Editor:Juan]