LME imposes price limits after March nickel crisis
Time:Thu, 17 Mar 2022 08:51:10 +0800
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LME nickel resumed trading on Wednesday; meanwhile, for the first time in LME history, the metal will be traded within a fixed price range.
The LME stopped nickel trading and canceled trades after prices doubled on March 8 to higher than US$100,000/ton in a few hours.
However, LME resumed trading at 0800 GMT on March 16, and the daily price range for nickel will be restrained between +5% to -5% based on the last closing price.
In the meantime, the LME also imposed 15% upper and lower limits on other base metals on March 15, including copper, aluminum, lead, tin, and zinc. It was the first time in LME’s 145 years history.
The conflict between Russia and Ukraine has driven the price of some metals to record high due to concerns about constraints on the supply of nickel, aluminum, and copper from Russia.
