Nickel Trade Falls Silent in Throwback to LME’s Darkest Days

  • CEO says some brokers would have struggled if trades stood
  • LME last suspended one of its contracts during 1985 Tin Crisis
WATCH: The Chinese tycoon, known as “Big Shot” in commodities circles is said to be facing billions of losses, after building this massive short position in nickel, only to see prices surge. Source: Bloomberg 
Lock
This article is for subscribers only.

For nearly a century and a half -- with only a handful of interruptions -- the London Metal Exchange has been the place where global prices are set for industrial metals from aluminum to zinc.

At 8:15 a.m. on Tuesday morning, that stopped. The LME suspended trading in nickel, used to make stainless steel and electric-vehicle batteries, after prices spiked as much as 250% in two sessions. More shocking for many in the market: the exchange later announced it would cancel all trades that took place in the hours before the halt.