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Nickel Market Still Broken as Price Swings Wildly on Low Volume

  • Prices surged more than 9% on the LME before dropping 7.4%
  • Erratic moves follow two days of limit-up trading in nickel
Updated on

Nickel prices swung sharply in barely-there volumes at the end of a tumultuous week on the London Metal Exchange, in which futures spent most trading sessions locked either limit-up or limit-down. 

Since reopening on March 16, Friday was only the second day that the nickel market remained within the LME’s new daily price limits as it seeks to reset after a massive short squeeze sent prices spiking. But the extreme lack of liquidity in the market has left it exposed to erratic moves -- prices rallied more than 9% and then fell as much as 7.4% in just the first 45 minutes of trading.