The London Metal Exchange halts trading in its nickel contract after the price surged past $100,000 per tonne amid a massive short squeeze.
- The 145-year-old exchange stated it was evident that the changing situation in Russia and Ukraine has affected the nickel market and had taken the decision to stop trading on orderly market grounds.
- The LME will proactively plan for the reopening of the nickel market and will report the elements of this to the market.
- The conflict in Ukraine has led to huge volatility in commodity markets due to Russia’s position as a major supplier of energy, metals, and foodstuffs, but trading has continued in major contracts.
- The price of LME’s benchmark three-month nickel contract nearly doubled in Asian trading and rose temporarily past $100,000 per tonne after a rising over 70% on Monday.
The latest surge happened after China Construction Bank was given additional time to pay margin calls for a client. The price eased and was at $80,000 per tonne after trading was suspended.
Source: FT
