Nickel, one of the commodities of importance to traders today, fell by less than 10% after fears of the new COVID-19 variant were discovered in Southern Africa. This new variant is called the Omicron.
Traders are still not sure about the complexities of this new virus and await more information from the World Health Organization (WHO) and the Center for Disease Control (CDC).
There are fears that the mutation gene in this COVID-19 virus makes it more deadly than the delta virus. It remains unclear whether the defense from the COVID-19 vaccines is capable of protecting people from this deadly variant.
Nickel futures fell to around $20,000 as a result of this terrible news.
According to a report from tradingeconomics.com, the price of Nickel is still more than 25% higher this year and remains close to a decade high of $21,046 hit on October 20th amid tight supplies and firm demand, particularly from the battery industry, continuing to support the metal.
Production has been hit badly in the top producer, the Philippines due to the rainy season.
Nickel is expected to trade at 19596.35 USD/MT by the end of this quarter.
Historically, it reached an all-time high of 54050 in May of 2007.
We await more developments as traders watch out for information about the Omicron COVID-19 virus.