Nickel price has gone parabolic. These stocks will benefit

By:
on Mar 9, 2022
  • The nickel price has gone parabolic in the past few days.
  • It has risen because of the sanctions on Russia.
  • We explain some of the top nickel stocks to watch.

The Nickel price has skyrocketed this week as investors focus on the impact of Russian sanctions. The price rose spectacularly, forcing London to halt its trading on Monday. A metal that was trading at $15,600 in March 2021 is now trading at $60,000. Here are some of the top nickel stocks to buy as the prices jump.

Glencore 

Glencore (LON: GLEN) is a leading mining company headquartered in Baar, Switzerland. It is a giant company that deals with commodities like coal, copper, and nickel. Most importantly, it is a leading commodity trader that sells millions of barrels of oil every day.

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Glencore has nickel operations in Canada, Norway, Australia, and New Caledonia. In 2021, the company produced about 102kt of nickel. Still, nickel is a small part of the company’s business, which makes most of its money from coal. 

However, as the nickel price jumps, it will continue playing an important role for the company. Therefore, there is a likelihood that the company will hike its dividends this year since other commodity prices have done good as well.

Norilsk Nickel

Norilsk Nickel (NILSY) is a Russian company that is the biggest player in the nickel industry globally. Because of its origins, the company’s stock price has crashed in New York, where its ADRs are traded. The stock is trading at $3, which is the lowest it has been on record. This price is also significantly lower than its 2021 high of almost $35.

In the current conditions, it is a bit difficult to invest in Norilsk Nickel because most Russian stocks have been termed as uninvestable. However, in the long-term, there is a likelihood that the company will survive and rebound because of the rising demand for the metal.

Vale

Vale (NYSE: VALE) is a leading Brazilian company valued at over $99 billion. It is one of the biggest mining firms in the world. Vale’s most important products are iron ore, nickel, manganese and ferroalloy, coal, and copper. 

Vale has giant operations globally in countries like Brazil, China, Canada, and Mozambique. The company produces nickel in Canada, where its subsidiary mines about 65,000 metric tons of the metal. 

Therefore, there is a likelihood that the Vale stock price will do well as the nickel prices rise. Indeed, the shares have risen by more than 76% from the lowest point in November last year.

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