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Limit Up or Limit Down? Nickel Traders Brace for Wild Ride

  • Nickel trading will resume on the LME on Wednesday morning
  • Almost all traders and analysts in a Bloomberg poll see a fall
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What the Future of Nickel Trading Looks Like Now
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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.