It was a good trading day for ASX nickel shares today, with most finishing ahead off the back of surging nickel prices in global markets.
Four ASX nickel shares that finished in the green include Mincor Resources NL (ASX: MCR), Panoramic Resources Ltd (ASX: PAN), IGO Ltd (ASX: IGO) and Western Areas Ltd (ASX: WSA).
Let's take a closer look at their performance today.
Image source: Getty Images
Nickel buying frenzy shoots price to record highs
ASX nickel shares jumped today after nickel prices continued to explode in international markets overnight.
By the close of trade on Wednesday, Mincor shares had climbed 2.93%, Panoramic shares were up 3.23%, the IGO share price jumped 2.19% and Western Areas finished 1.73% higher.
Nickel prices hit record highs above US$100,000 a tonne overnight. The metal surged 400% compared to Friday's close, according to a report on NAB trade.
In response to these unprecedented prices, the London Metal Exchange suspended nickel trading until at least Friday.
Nickel prices have rocketed 104.49% in a month and 200.57% in a year, trading economics data reveals.
In a report from Thomson Reuters cited by NAB, ING analysts said Nickel is clearly trading in crisis mode.
Fundamentals, though supportive of stronger prices, do not justify this frenzy. The market has long faced structural issues.
Nickel is a crucial component in electric batteries. In a company presentation reported to the market yesterday, Mincor noted electric vehicle sales could hit 20 million by 2025 and more than 70 million by 2040. The company added:
High nickel content batteries are the key to longer range, more efficient electric vehicles.
One ASX nickel share that wasn't so lucky today was Nickel Mines Ltd (ASX: NIC). As my Foolish colleagues reported, the company's share price plummeted today, sinking 23% before recovering to finish 4.75% in the red at market close.
ASX nickel share recap
Despite some experts calling it out today as a market frenzy, it's been a big 12 months for ASX nickel shares. Mincor shares have rocketed 115% in the past year, Panoramic is up a whopping 146%, the IGO share price has seen gains of 108% and Western Areas shares surged 50% in this period.
In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned around 4.16% in the past year.
