Nickel’s LME price jumps by 15% limit

Nickel price jumped by the 15% daily limit on the London Metal Exchange. While nickel futures reopened on March 16, trading had been effectively frozen until yesterday, as the metal plunged by the limit at the open each morning.
Nickel prices soared 250% over two trading sessions in early March, touching a record $101,365 a tonne. It is now down about 70% from the record high, but up more than 30% from the start of the month.
Prices are now broadly in line with nickel contracts on the Shanghai Futures Exchange, which rose less sharply during the turmoil in early March.
Trading is becoming increasingly illiquid on the LME, with many investors looking to liquidate their positions in the wake of the metal’s unprecedented volatility.
China, the world’s largest base metals producer, and consumer is fighting its worst coronavirus outbreak in two years. Lockdowns in the country’s industrial bases, such as the top steelmaking hub of Tangshan as well as the commercial center of Shanghai, have hit all aspects of life, from logistics to manufacturing to consumption. 

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished