• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Nickel Market
    Nickel News
    Nickel Stocks
    • Nickel Market
    • Nickel News
    • Nickel Stocks
    1. Home>
    2. ResourceBase Metals Investing Nickel Investing>
    Loading...
    0

    LME Halts Nickel Trading Again on Technical Issue Soon After Reopening

    Priscila Barrera
    Mar. 16, 2022 08:30AM PST

    Following a chaotic restart on Wednesday, the London Metal Exchange suspended nickel trading for the second time in its history.

    LME Halts Nickel Trading Again on Technical Issue Soon After Reopening

    A week after nickel hit historic levels before being suspended, the London Metal Exchange (LME) resumed trading of the base metal, but halted electronic transactions once again soon after the market reopened.

    Pointing to a technical issue, the 145-year-old exchange said on Wednesday (March 16) that its LMEselect platform allowed a small number of trades to be executed below the daily price limit of 5 percent that it has put in place. Nickel prices were trading at US$45,590 per tonne when the LME restarted nickel trading.

    “All nickel trades executed on LMEselect at the lower daily price limit will remain,” the exchange said in a press release, adding that it is investigating the issue. “The small number of nickel trades executed on LMEselect below the lower daily price limit will be canceled.”


    Nickel prices climbed to an unprecedented level of more than US$100,000 on March 8, up more than 250 percent in two days, largely on the back of a short squeeze. The largest-ever move seen on the LME was attributed to the massive short position held by Chinese tycoon Xiang Guangda, who controls the world’s largest nickel producer, Tsingshan Holding Group, and was facing billions of dollars in mark-to-market losses.

    The exchange, which has now suspended nickel trading for the second time in its history, later canceled all transactions done on March 8. Following criticism for its decision, the LME defended the suspension of nickel trading saying the market had become “disorderly” and prices did not reflect the physical market.

    On Monday (March 14), the exchange said it would resume trading of nickel, which it had suspended “against the backdrop of widely reported large short positions (originating primarily from the OTC market), combined with geopolitical news-flow and a background environment of low metal stocks.”

    The call to restart the nickel market also came after China’s Tsingshan reached a standstill deal with banks, which agreed to not make margin calls on or close out the producer's nickel positions on the LME.

    “As an integral feature of the agreement, there is provision for the existing hedge positions to be reduced by the Tsingshan group in a fair and orderly manner as abnormal market conditions subside,” Tsingshan said.

    Additionally, state-backed Shanghai Securities News said the Chinese company has signed a deal with two companies to swap its nickel products with a purer form of the metal, helping Tsingshan to close out its positions on the LME, Reuters reported. Tsingshan cannot trade its products, nickel matte and nickel pig iron, on the exchange, which only accepts nickel cathodes, pellets, briquettes and rounds for physical delivery.

    On Wednesday, to prevent a chaotic nickel market reopening, the LME established a 5 percent trading limit above or below the last closing price before it halted trading. But nickel prices fell almost immediately.

    “It is reasonable to expect volatility in the nickel price once trading recommences,” Andrew Mitchell, Wood Mackenzie's director of nickel research, said in a note last week. “But for the sanctity of the metal, and indeed the LME, the new procedures need to find acceptance and work to prevent such a situation occurring in the future.”

    Nickel is used mainly in stainless steel, but has been gathering attention for its use in electric vehicle batteries. Before the nickel market moves seen this past week, prices were already expected to remain strong, according to the nickel outlook from many analysts. Nickel stocks have also seen price gains so far this year.

    Don’t forget to follow us @INN_Resource for real-time updates!

    Securities Disclosure: I, Priscila Barrera, currently hold no direct investment interest in any company mentioned in this article.

    From Your Site Articles
    • Nickel Trends 2021: Nickel Prices Soar, Demand Shows Signs of ... ›
    • Nickel Price Hits Record US$100,000 on Short Squeeze, LME ... ›
    • Nickel Outlook 2022: Balanced Market Ahead, Prices to Remain ... ›
    • Ways to Invest in Nickel | INN ›
    • Top Nickel Stocks on the TSX and TSXV | INN ›
    • Nickel Price Update: Q1 2022 in Review | INN ›
    • Nickel Price Update: Q2 2022 in Review ›
    • Nickel Price Update: Q1 2022 in Review ›
    • Nickel Price Update: Q1 2022 in Review ›
    • Nickel Price Update: Q2 2022 in Review ›
    Related Articles Around the Web
    • LME Nickel | London Metal Exchange ›
    • Inside Nickel's Short Squeeze: How Price Surges Halted LME ... ›
    https://www.linkedin.com/in/priscilabarrera/
    pbarrera@investingnews.com
    The Conversation (0)

    Go Deeper

    AI Powered
    Seesaw diagram with "demand" outweighing "supply" on a chalkboard.

    Nickel Price Update: Q2 2025 in Review

    metal cylinders in a warehouse

    How to Invest in Nickel

    Priscila Barrera

    Priscila Barrera

    Managing Editor, Resource

    Priscila is originally from Buenos Aires, Argentina, where she earned a BA in Communications at Universidad de San Andres. She moved to Vancouver for the first time in 2010 and fell in love with the city. A few years after she went to London, UK, to study a MA in Journalism at Kingston University and came back in 2016. She enjoys reading, drinking coffee and travelling.

    Latest News

    Gold Project Acquisition, Placement and MD appointment

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Nickel Investing Stocks

    FPX Nickel

    FPX:CA

    Ni-Co Energy

    Noble Mineral

    NOB:CA

    Magna Mining

    NICU:CA

    Power Nickel

    PNPN:CA
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×
    Priscila Barrera
    Priscila Barrera

    Managing Editor, Resource

    Priscila is originally from Buenos Aires, Argentina, where she earned a BA in Communications at Universidad de San Andres. She moved to Vancouver for the first time in 2010 and fell in love with the city. A few years after she went to London, UK, to study a MA in Journalism at Kingston University and came back in 2016. She enjoys reading, drinking coffee and travelling.

    Full Bio

    Follow

    Learn about our editorial policies.