The ASX nickel share Nico Resources Ltd (ASX: NC1) share price has spiked into the green today, peaking 23.68% higher in afternoon trade. Nico shares closed trading on Wednesday 15.79% higher at $1.10.
While there's been no news from the $86.4 million company by market value today, its share price has surged 452% this year. Nico Resources first listed in mid-January.
A quick refresher on ASX nickel share Nico Resources
Nico is a mineral exploration and development company. It aims to grow and create value through development of mineral resource projects throughout Western Australia and South Australia.
Earlier in the year, Nico completed the purchase of a nickel asset portfolio. This was pursuant to a share sale and subscription agreement with Metals X Limited (ASX: MLX).
The acquisition gave the company a 100% legal and beneficial interest in the Wingellina and Claude Hills nickel projects located in WA and SA respectively.
Nico Resources is also 15% owned by Blackstone Resources Ltd (ASX: BSX).
Nickel still top-heavy
The price of nickel turned sharply in mid-March and has been softening ever since. It's currently down more than 20% in the last month.
However, the nickel price still remains up 46% for the last 12 months. The surge comes amid tensions in Europe and a lumpy outlook for steel production out of China.
Moreover, the enormous spike in nickel – where prices thrust past US$48,000 per tonne – occurred after a short squeeze on the industrial metal, not unlike that seen in the Gamestop saga.
The spike was due to fears of a supply shock from Russia, one of the world's top nickel producers. However, fears were soon calmed once traders regained control of the market and with the intervention of the London Metals Exchange (LME). It now trades at US$26,328 per tonne.
Nevertheless, prices remain top-heavy, especially considering supply woes haven't been completely squashed. That's amid weaker than expected economic data from China this week which has hurt the outlook for steel production. Nickel is a key ingredient in the production of stainless steel.
With that outlook, nickel players like Nico Resources are in a good position to benefit from the longer-term trend in the underlying market.
Nico Resources share price summary
Shares in Nico shot to fame early on, first exhibiting a gradual climb northward. The ASX nickel share spiked hard in March and then again in April.
On the latter occasion, the company released an investor presentation outlining its value proposition and upcoming projections.
The market for nickel remained strong in April, and investors no doubt were responsive to the company's investor presentation given the reaction.
Shares shot to a high of $1.72 before turning sharply to eventually find a bottom at the 89.5 cent mark on Monday.
They've since rallied hard again and are now trading 23% higher to current levels.
