Nickel trading finally resumes at the London Metal Exchange… but is suspended almost immediately after price crash
Chaos at the London Metal Exchange (LME) broke out again as trading in nickel resumed but was almost immediately halted after the price crashed.
The market was suspended last Tuesday when the price doubled to $100,000 a ton in minutes. The LME took measures, including price limits, to stop wild swings.
But just seconds into yesterday’s restart nickel, used to make steel and in electric car batteries, fell through the 5 per cent daily limit.
Nickel mania: The London Metal Exchange was suspended last Tuesday when the Nickel price doubled in minutes. But seconds into yesterday’s restart it fell through the 5% daily limit
Only 206 lots changed hands. Most trades took place at $45,590 – half where they were last week.
The LME said: ‘We have now halted the nickel electronic market to investigate a potential issue with the limit-down band.’
The sharp rally was caused by Xiang Guangda, the tycoon behind a China stainless steel group, who struggled to meet demands for extra cash on a huge short bet that backfired.
Bianca Blake, spokeswoman for the LME, said: ‘Following re-open, the nickel market moved to its limit-down pricing band.
‘We have now halted the nickel electronic market to investigate a potential issue with the limit-down band.’