Oil / Commodities - Nickel futures are not trading anywhere in the world on Wednesday (Asia) after prices in Shanghai hit their daily upward limit in the wake of unprecedented moves and a trading suspension on the LME. Overnight trading of the metal on the Shanghai Futures Exchange – China’s top commodities bourse – saw prices surge 17% to the daily limit of 267,700 yuan. That means there will not be any more trades during the current sessions, which ends at 3pm local time, unless transactions are concluded below that price. Nickel prices rocketed as much as 250% in the last two days on the LME. The unprecedented rally has prompted the 145-year-old exchange to suspend nickel trading on Tuesday as well, with a resumption unlikely before Friday. Nickel’s dramatic surge was powered by a squeeze that forced giant producer Tsingshan Holding Group and its brokers to liquidate some short positions built up over the course of months. The LME said nickel’s moves would be capped at 10% after it restarts. The metal surged as much as 110% on Tuesday, the most ever, though the LME later announced it would cancel all trades that took place in the hours before the halt.
Newsletter - March 9, 2022
Newsletter - March 9, 2022
Newsletter - March 9, 2022
Oil / Commodities - Nickel futures are not trading anywhere in the world on Wednesday (Asia) after prices in Shanghai hit their daily upward limit in the wake of unprecedented moves and a trading suspension on the LME. Overnight trading of the metal on the Shanghai Futures Exchange – China’s top commodities bourse – saw prices surge 17% to the daily limit of 267,700 yuan. That means there will not be any more trades during the current sessions, which ends at 3pm local time, unless transactions are concluded below that price. Nickel prices rocketed as much as 250% in the last two days on the LME. The unprecedented rally has prompted the 145-year-old exchange to suspend nickel trading on Tuesday as well, with a resumption unlikely before Friday. Nickel’s dramatic surge was powered by a squeeze that forced giant producer Tsingshan Holding Group and its brokers to liquidate some short positions built up over the course of months. The LME said nickel’s moves would be capped at 10% after it restarts. The metal surged as much as 110% on Tuesday, the most ever, though the LME later announced it would cancel all trades that took place in the hours before the halt.