The Russia-Ukraine war has sent global commodity prices in a tizzy. The prices of nickel, in particular, have shot through the roof, given that Russia is a major producer, and the effects are being felt all over the world. India does not import nickel from Russia (which controls almost 8 per cent of the global supply) but it is still feeling the squeeze, since the overall supply has been affected and caused extreme price volatility.
Perhaps the most affected industry in India on account of this is stainless steel, which is a major importer of nickel.On 7 March, the price of nickel reached $100,000 per ton on the London Metal Exchange, after which the exchange had to suspend trading. While the price of nickel has cooled down significantly from those highs, it continues to affect stainless-steel manufacturers and thereby the end consumers. On Friday, the price of nickel was at $35,500 per ton.
While there are fears that there may be a price rise in stainless steel goods — from cutlery to surgical instruments to automobile components — the steel industry in India is using various strategies to mitigate the effects of the price volatility in international nickel prices. ThePrint explains how.