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Nickel Market Caught Up in Fresh Squeeze

  • LME steps up monitoring of the nickel market amid tightness
  • Nickel stockpiles tracked by the LME are at lowest since 2019
Updated on

Nickel’s biggest supply squeeze in more than a decade is drawing attention from the London Metal Exchange, as plunging inventories mean buyers are forced to pay massive premiums for immediately available metal.

Cash contracts on the LME reached a $90-a-ton premium to those expiring a day later, the highest since 2010 and nearing levels seen in 2007 during a historic squeeze. The bourse has stepped up its monitoring of the nickel market in response, and may take further measures to ensure orderly trading if needed, a spokeswoman said by email.