London Metal Exchange to Reopen Nickel Trading on March 16

SEATTLE (Scrap Monster): The recent notice issued by the London Metal Exchange said that the exchange will resume nickel contracts trading effective 8 AM London time on March 16^th, Wednesday.

According to LME, trading shall resume on LMEselect in the usual way, with the market opening in a pre-open state. However, pre-open will commence at 7.30 AM London time on the date of resumption.

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The Chinese Tsingshan Holding Group had reached an agreement with banks to not make margin calls on or close out the producers’ nickel positions on the exchange. This will ensure calmness of the market, it said. It must be noted that the nickel prices had surged by more than $100,000 per tonne on March 8th, 2022 after Tsingsham purchased large amounts of the metal to reduce its short positions. Following this, LME was forced to halt trading of the metal.

The British Financial Conduct Authority (FCA) and the Bank of England had been in negotiations with the LME with regards to a fair and orderly market in nickel. Accordingly, the exchange has decided to set daily price limits in either direction for all base metal outright contracts, including nickel contracts.