Riots in the worlds third-largest nickel production area, causing LME nickel futures prices to soar-Zhejiang Benji Stainless Steel Co., Ltd

Recently, the French territory of New Caledonia, located in the South Pacific Islands, has been embroiled in violent riots due to changes in voting regulations. This incident not only poses a threat to the stability of the region, but also has had a significant impact on the global nickel market. According to data from the London Metal Exchange (LME), nickel futures prices rose 7% as a result, indicating market concerns about nickel supply disruptions.
New Caledonia, as the worlds third-largest nickel production site last year, has been closely monitored for its abundant nickel resources. However, this week, due to the adjustment of voting regulations, violent riots occurred in the local area, leading to a chaotic social order. This incident not only seriously affected the lives of local residents, but also had a huge impact on local nickel production.
Eramet SA, a French mining company, is one of the important nickel miners in the New Caledonia region. In this riot, the companys production line was severely disrupted, resulting in a significant decrease in nickel production. In order to cope with the current difficulties, Eramet SA has to adopt a strategy of minimum production capacity operation to minimize losses.
After the riots in New Caledonia, LME nickel futures prices rose rapidly, reflecting market concerns about nickel supply disruptions. Investors generally believe that the riots in New Caledonia may further exacerbate the supply tension in the global nickel market, thereby driving up nickel prices.
The impact of the riots in New Caledonia on the nickel market is evident. On the one hand, the decrease in nickel production in the region will lead to a global shortage of nickel supply, thereby pushing up nickel prices; On the other hand, due to the rise in nickel prices, the production costs of related enterprises will also increase, thereby having a certain impact on the global economy.
With the gradual stabilization of the situation and active responses from governments around the world, nickel production in New Caledonia is expected to recover in the future. At that time, the tight supply situation in the global nickel market will be alleviated, and nickel prices are expected to return to normal levels.

Zhejiang Benji Stainless Steel Co., Ltd.,