The London Metal Exchange will reopen nickel trading during Asian trading hours from March 20, potentially providing an important liquidity boost to a market that has struggled to recover from last year's crisis.
March 2022 - The London Metal Exchange suspends trading for a week and cancels billions of dollars of trading in the nickel market to curb an out-of-control short squeeze centred on top producer Tsingshan Holdings Group Co LTD. Prices have surged most sharply during the squeeze and are now open at 8am London time.
Nickel contracts have been plagued by low liquidity since tightening, leading to volatile trading conditions and casting doubt on the viability of its role as a global benchmark pricing mechanism for the metal used in batteries and stainless steel. The crisis -- which brought several members to the brink of default -- has also prompted regulatory investigations and lawsuits, with some major investors vowing never to trade on the exchange again.
The LME has been seeking to restart trading during Asian hours for several months and said on Thursday that it hoped the resumption of trading would "further facilitate the re-establishment of liquidity in nickel markets".
