The world’s main nickel market reopens Wednesday, a week after the London Metal Exchange stepped in dramatically to defuse a runaway short squeeze. Most traders say they expect prices are more likely to drop than to spike again -- but either way, they’re getting ready for fireworks.
Nickel was suspended on March 8 after prices rose 250% in little more than 24 hours, largely as metals tycoon Xiang Guangda struggled to pay massive margin calls to his banks and brokers. The squeeze -- and the LME’s unprecedented decision to cancel several hours’ worth of trades -- has roiled the global metals industry and sparked heated criticism of the exchange.
