Loading ...Nickel paralysis deepens as battered LME market barely trades
Nickel trading volumes continue to collapse on the London Metal Exchange in the wake of an historic short squeeze, setting up a liquidity crisis in the market for one of the most crucial industrial commodities.
The LME halted nickel trading and canceled nearly $4 billion worth of transactions earlier this month after prices spiked by 250% in under two days, as it sought to protect its brokers from huge margin calls owed by Tsingshan Holding Group Co. and other short position holders.
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After a haphazard effort to restart trading, nickel has spent much of the past fortnight locked at the upper or lower limit of a new daily price cap designed to rein in the unprecedented volatility.
Nickel paralysis deepens as battered LME market barely trades