The London Metals Exchange took what it called an “unprecedented” step of cancelling all the trades in nickel futures, responding to market conditions that sent the price of the industrial metal doubling.
The London Metals Exchange on Tuesday took what it called an “unprecedented” step of cancelling all the trades in nickel futures, responding to market conditions that sent the price of the industrial metal doubling.
Nickel had surged as much as 111%, moving past $100,000, before the LME suspended, and then cancelled, all the trades. Analysts pointed to China as the source of short positions that were in need of closing after the metal surged as much as 70% on Monday. ING’s Yao said the nickel market has long been faced with structural issues, as exchange tradeable nickel is only about a quarter of the market.