The exchange brought in daily price limits to reduce volatility as part of efforts to restart trading for the nickel contract, which was first suspended last week when the price skyrocketed to over
The exchange said it “allowed a small number of trades” to be carried out below the lower price limit. It vowed to reopen trading “as soon as possible.”
Nickel is used mostly to produce stainless steel and some alloys, but increasingly it is used in batteries, particularly for electric vehicles. The going rate for the metal also often serves as a benchmark to price other materials used in creating industrial compounds such as nickel sulfate, which is used in coatings, textiles and other industries.
The LME's move to suspend trading in the metal on
The disruption in trading clouds how much the market is willing to pay for the metal. That's prompted most nickel sulfate producers in
Nickel trading was plunged into turmoil last week when a big bet by Chinese metals giant
The big fear was that Tsingshan would struggle to make margin calls with its bankers, potentially facing billions of dollars in losses. In a margin call, a broker tells a client to put up cash after it borrowed money to make trades.
Tsingshan said this week that it struck a deal with creditors so they wouldn't make margin calls or close out their positions against the company while it resolves the problem.
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