Nickelio: It opened but … its trading in London stopped again – It is falling 5%

LAST UPDATE: 11.17

The nickel trading on the London Stock Exchange (LME) resumed on Wednesday morning, eight days after the closure of trading, with the price of the metal immediately falling by 5%, which allows the new limit set at trading , and the negotiation to be interrupted again, this time for “technical reasons” related to the new limit.

Just 1,236 tonnes of nickel changed hands before trading resumed. Most trades were made at the low price of $ 45,590 per ton. Many trades appeared to be below this threshold, suggesting that they could be canceled later by the stock exchange authorities.

“After the resumption, the market moved to a limit down,” the LME said in a statement. “We have stopped negotiating to investigate a possible technical issue with the negotiation threshold and we will return with new ones as soon as possible.”

The fall narrows, according to Bloomberg, the gap between nickel contracts on the Shanghai Stock Exchange, where the metal continued to trade during the downtrend in London, and the corresponding ones on the LME.

Last Tuesday’s historic decision to stop trading after an unprecedented price spike has left many brokers in dire straits to pay huge margin calls for the short positions held mainly by China’s Tsingshan Group Holding Co.

The fall is a sign of normalization in the market, as Tsingshan reached an agreement to “freeze” its related liabilities to banks. Commodity markets have faced a general sell-off since the day the LME cut trading in nickel contracts, the rally of which jeopardized the stability of the market, although on Wednesday the remaining metals are gaining some ground.

The nickel contract in Shanghai closed with gains of 8.6%, at $ 37,048 per ton, but remains lower than the price of the corresponding contract on the LME before the opening of the market in London.