Nickel prices rallied to their highest level since 2015 on Wednesday, getting a lift from the possibility that Russian nickel producer Norilsk Nickel will be included under U.S. sanctions on Moscow that have already led to a rally in aluminum prices.

Nickel prices were up by more than $1,000 per metric ton from Tuesday, largely on speculation that Norilsk “could be added to sanctions,” said Anthony Poole, editor-in-chief of S&P Global Platts’ Platts Metals Daily.

That “could be highly disruptive, especially given the demand for nickel and cobalt in electric-vehicle batteries, smart phones and other uses of lithium-ion batteries, as well as strong demand for nickel and cobalt-bearing superalloys in aviation and in industrial gas turbines,” he said.

The three-month price for nickel on the London Metal Exchange closed at $15,275 per metric ton—the highest in three years, up 7.5% for the largest daily gain in 6 1/2 years, according to Reuters.

The U.S. Treasury on April 6 issued new sanctions on Russian entities and individuals in response to what it said was Moscow’s attempt to “subvert Western democracies” and its pursuit of “malicious cyberactivities.” The sanctions include United Co. Rusal 0486, +8.45% which is responsible for 7% of the world’s aluminum production.

The sanctions on Rusal has already lifted prices for aluminum to their highest in more than six years. Three-month aluminium prices Wednesday on the LME hit their highest since August 2011 at $2,529.50 per metric ton, according to Reuters.

https://www.marketwatch.com/story/nickel-prices-rally-to-a-3-year-high-on-growing-concerns-over-us-sanctions-on-russia-2018-04-18