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Nickel Reopens Limit-Down in a Shambolic Day of False Starts

  • Exhausted traders expressed exasperation with the LME
  • Exchange raises daily limit for nickel to 8% on Thursday
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LME Halts Nickel Trade as Prices Immediately Plunge
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Nickel prices tumbled by the maximum allowed as the market reopened in a messy sequence of false starts, with a glitch halting electronic trading for several hours and only a handful of contracts changing hands.

For the London Metal Exchange, already facing the wrath of investors for its decision to cancel $3.9 billion in trades last week, it was another embarrassing setback. The turmoil in nickel has plunged the metals industry into chaos, after a huge short squeeze focused on Chinese tycoon Xiang Guangda drove the price up by an unprecedented 250% in little more than 24 hours last week.