JPMorgan Chase & Co. made about $100 million trading nickel last year, according to people familiar with the situation, as it benefited from a price spike on the back of a Chinese-led supply squeeze.
The blowout year in nickel underscores JPMorgan’s growing dominance in a corner of the commodities markets that rivals have retreated. The bank has become the go-to financier for big deals in base metals, from the Chinese nickel purchases that sparked last year’s price surge, to hedging transactions for carmakers, which need the metal for electric-vehicle batteries. A spokesman for JPMorgan declined to comment.
Nickel, usually a niche market dominated by stainless steel mills, became the world’s hottest metal in 2019 when prices jumped by two-thirds in a matter of months. Continue Reading →