Nickel trading has resumed on the London Metal Exchange (LME) as the market stabilizes following an unprecedented squeeze that sent prices soaring in recent weeks.
A flurry of deals came as LME prices moved back into line with nickel contracts trading on the Shanghai Futures Exchange, which remained open during a weeklong suspension of trading in London in the wake of a short squeeze.
More than 11,300 contracts, or 67,800 tons of nickel, had traded yesterday (March 22), while LME prices pared sharp early losses.
Nickel trading had been largely frozen since the market reopened on March 16 as the exchange’s daily limits prevented futures from falling to a level where buyers were willing to step in.
Bullish investors looking to unwind their positions had been caught in a long line-up of sellers over the past few days as prices lurched lower in daily limit-down moves.
By the close of trading on the LME, nickel fell 10% to settle at $28,159 U.S. a ton. In other metals, copper, aluminum, tin and zinc declined in London trading, while lead prices rose.
