The London Metal Exchange suspended nickel trading after prices more than doubled to cross $100,000 a tonne for the first time, over fears Russia’s attack on Ukraine could disrupt supplies.
The price soared 111% to $101,365 on Tuesday in the biggest jump on record by the LME before falling back to $82,250 a tonne.
Russia supplies around a tenth of the world’s nickel, mostly for stainless steel and electric vehicle batteries, but sanctions on Russia raise fears of shortages.
The exchange said trading would not resume on Tuesday but could remain suspended for several days.
The LME said the situation in Russia and Ukraine had particularly affected nickel trading and it had suspended trading to maintain an orderly market.
“The LME will actively plan for the reopening of the nickel market and announce the mechanics to the market as soon as possible,” he said. “The LME will consider a possible multi-day shutdown, given the geopolitical situation that underlies recent price movements.”
The exchange will also consider whether trades booked before 8:15 a.m. should be canceled or adjusted.
On Monday night, the exchange introduced rule changes allowing traders to defer delivery obligations on all of its major contracts, including nickel. However, this failed to stem the price spike.
The surge in prices left brokers struggling to pay margin calls on short positions.
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Source: www.telegraph.co.uk
This notice was published: 2022-03-08 12:02:51
