The IGO Ltd (ASX: IGO) share price is soaring to new heights today as nickel prices take off once more.
The commodity, which was the subject of a major short squeeze just weeks ago, saw its value surge by its enforced maximum of 15% for the second session in a row on the London Metal Exchange (LME) overnight, reports Bloomberg.
That might have helped boost the IGO share price to a new record high of $13.85 during Friday's session.
At the time of writing, the IGO share price has retreated slightly to trade at $13.66. Though, that's still 3.33% higher than its previous close.
Let's take a closer look at what's been going on with the nickel, copper, cobalt, and lithium producer's stock lately.
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IGO share price takes off alongside nickel prices
IGO's shares are rising on Friday, as did nickel prices overnight. Today's gains see the company's stock trading for 13.6% more than it was at the end of last week.
Meanwhile, the price of nickel launched during Wednesday and Thursday's trade. It reached a high of US$37,325 per ton overnight (AEST time).
Meanwhile, according to Reuters, the price of nickel was also driven 17% higher on the Shanghai Futures Exchange in Thursday's session.
The boost was likely driven by concerns that Russia's invasion of Ukraine could bring about a supply shortage.
The metal's value's increase follows a short squeeze that forced the LME to halt trading and cancel orders after the commodity's price surged to a record US$101,365 earlier this month, reports Bloomberg.
IGO owns the nickel, copper, and cobalt producing Nova Operation, located in Western Australia.
The IGO share price might have been driven higher today on expectations that rising nickel prices could increase its profitability.
Right now, the company's stock is 14% higher than it was at the start of 2022. It has also gained 119% since this time last year.
