Metal exchange

18 Mar 2022 By George Hay, Jennifer Hughes Follow @gfhay

The London Metal Exchange’s nickel-trading goofs have upset customers and damaged its good name. Owner HKEX’s vision to link western and eastern markets already faced challenges. At the right price, U.S. rival ICE might get another shot at the prize it missed out on in 2012.

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Benchmark nickel on the London Metal Exchange slid 12% to hit its allowed lower price limit in early trading on March 18, the third straight day the metal has done so.

The metal used to make stainless steel and electric vehicle batteries fell to $36,915 a tonne when it opened on the LME.

Volumes were scant, with only 103 lots traded by 0815 GMT, with few buyers willing to pay the current price, since it is still above the price on the Shanghai Futures Exchange, traders said. Shanghai’s April contract traded at 219,620 yuan, or $34,566 a tonne.

The LME suspended nickel trading on March 8 after prices spiked to over $100,000 a tonne, and it resumed trading on March 16 with an adjusted starting price of under $48,000 and a limited range of 5% above or below that price. The trading limit widened to 8% beginning March 17 and 12% on March 18.

Context News

Benchmark nickel on the London Metal Exchange slid 12% to hit its allowed lower price limit in early trading on March 18, the third straight day the metal has done so.

The metal used to make stainless steel and electric vehicle batteries fell to $36,915 a tonne when it opened on the LME.

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