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London nickel rises 2.4% as volatile trading begins to calm

London nickel rises 2.5% after market open
London nickel rises 2.5% after market open   -   Copyright  Thomson Reuters 2022
By Reuters

LONDON – Benchmark nickel on the London Metal Exchange (LME) rose slightly after market open on Wednesday, in a second day of relatively calm early trading following huge price swings in recent weeks.

Prices rose around 4% to $33,130 a tonne in first moments after the open at 0800 GMT before easing to $32,550, up 2.4%, by 0836 GMT.

The LME suspended nickel trading on March 8 after prices spiked by more than 50% to hit $100,000 a tonne.

Activity resumed on March 16 at an adjusted starting level of $48,000 and has since see-sawed to $26,675 on March 22 and back to $40,700 on March 25.

A top exchange executive said on Tuesday the LME would hold an independent review into the price spike and trading shutdown.

The price surge was blamed on short-covering by one of the world’s top producers, China’s Tsingshan Holding Group. The LME has said the large short positions originated primarily from the over-the-counter (OTC) market.

Since restarting nickel trading, the LME has implemented daily price limits on outright contracts for the first time in its 145-year history.