LME Expands Nickel Price Range Limit To 12%, Trading Disturbed Again

(Bloomberg): The London Metal Exchange (LME) said on Monday it would extend the limit to 12% after the price of nickel fell to the limit for a second day in a row.

The nickel market price on the 17th fell 8%, which is the limit of the price range so far. The LME's nickel trade, which has been in turmoil, experienced another problem on the same day, forcing the LME to postpone the start of trading. Nickel prices are down 58% from their highs hit earlier this morning, when the trading chaos hit, but only a handful of trades have taken place.

The 18 minutes of the devil's mind can't get out of my head-Nickel market turmoil, companies at risk of survival

LME's nickel trading was suspended from the 8th and only resumed on the 16th. However, before the start of trading on the 17th, there was a problem with the electronic trading system, and the start of trading was postponed to 8:45 am. The LME expanded the limit to 8% on the 16th, but the system rejected a sell order at the full limit of 8%.

LME Rejects Orders 8% Off After Nickel Range Limit Increase - Traders

After that, three trades appeared to have closed at that price, four minutes before the original scheduled opening time. In response, the LME notified brokers that it would delay the start of trading until 8:45 a.m. and also canceled three trades that were believed to have been processed earlier. After trading finally opened, nickel futures fell a full 8% to $41,945 a tonne. By 10 a.m., only two trades had taken place.

Nickel is one of the most important metals in the world, and LME's handling of repeated confusion has caused widespread investor anger, and some even say that they will stop trading at LME.

"Reliability is rapidly eroding," said Keith Wilde, head of trading at Romco Metals, in a telephone interview.

Original title: LME Boosts Nickel Trading Limit Again, to 12%, After Fresh Chaos (excerpt)

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Mark Burton, Alfred Cang, Jack Farchy