The London Metal Exchange said it has suspended trading at its nickel market for the remainder of Tuesday, “after three months of more unprecedented increases in the price of nickel.”
Nickel rose up to 111 per cent during the trading day in Asia and briefly traded above $100,000 a tonne, according to data from Bloomberg. Bloomberg reported that it was the biggest move on the LME to date.
“The LME, in close discussion with the Special Committee, is monitoring the impact of the LME market and the evolving situation in Russia and Ukraine,” the exchange said in a statement. “It is clear that this has affected the nickel market. In particular, and given the price volatility in the Asian hours this morning, the LME has taken this decision on a systematic market basis.”
Nickel prices are rising on supply concerns related to Russia’s invasion of Ukraine. On Monday, it closed with a gain of 66%. According to Bloomberg, Russia produces 17% of the world’s top grade nickel.
A sharp rise in nickel prices and fears of a supply shortfall have led to a sharp decline in the metal.
“The overnight price action in the nickel market suggests a sense of panic and the pressure on commodity supply is not going anywhere anytime soon,” said Jeffrey Haley, senior market analyst at Oanda.
LME said it plans to reopen the nickel market, and will “announce its mechanics to the market as soon as possible.
“The LME will consider a possible multi-day closure, given the geopolitical situation underscoring the recent price volatility. In this context, the LME will also make arrangements to deal with the upcoming deliveries.”
This story has been published without modification to the text from a wire agency feed
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