London Metal Exchange Halts Nickel Trading Again, Points To “IT System Error”

The London Metal Exchange saw itself caught in a bind again after it halted nickel trading the same day it reopened the market for the resource today.

The exchange initially suspended the nickel market on March 8 after the price skyrocketed beyond US$100,000/tonne in just a few hours, after Chinese nickel producer Tsingshan Holdings Group covered its massive short position on the resource. It canceled US$3.9 billion worth of trades, plummeting the price back to US$50,000.

The firm also imposed a 5% price limit, up or down, to regulate the trading.

However, when the nickel market opened today, the price went below the limit at US$45,590. But due to systems error, LMEselect still “allowed a small number of trades to be executed below this lower daily price limit.” This prompted the exchange tp halt once again the nickel trade.

“The LME will continue to investigate the IT system error and will update the market in due course as to a future re-opening of the Nickel market on LMEselect,” the exchange’s statement read.

The news coincided with the announcement by China’s Shanghai Securities News that Tsingshan has reportedly reached an agreement with two companies to “swap its nickel products with a purer form” to close out its short position on the exchange.


Information for this briefing was found via London Metal Exchange, Business Insider, Reuters, CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Silver47 Completes Property-Wide Geochemical, Rock Sampling Program At Adams Plateau, Identifies Numerous Targets

Altamira Gold Identifies Presence Of Second Mineralized Porphyry Body At Cajueiro

Related News

BHP’s Nickel Shutdown Derails Plans for LME Alternatives

Global Commodities Holdings Limited (GCHL) and Abaxx Technologies Inc., two new nickel trading platforms aimed...

Thursday, September 19, 2024, 08:09:52 AM

Nickel Prices Continue To Slide On LME While Volumes Come Up Short

Consistent with the price trajectories of many other non-energy commodities, nickel prices have corrected sharply...

Sunday, July 24, 2022, 09:00:00 AM

LME To Remove 10% Of Brands Over Responsible Sourcing

The London Metal Exchange (LME) has announced plans to suspend or delist 10% of its...

Thursday, January 18, 2024, 07:23:52 AM

Indonesia: OPEC, But For Nickel; Australia, Canada Say No

Indonesian Investment Minister Bahlil Lahadalia floated the notion of an alliance of nickel exporting countries...

Friday, November 18, 2022, 11:44:00 AM

Giga Metals Starts 2021 Program At Turnagain Project To Produce Pre-Feasibility Study In Q3 2022

Giga Metals Corp. (TSXV: GIGA) announced today that its 2021 work program has started at...

Monday, July 5, 2021, 10:08:00 AM