Chen Hongliang, President of Zhejiang Huayou Cobalt Co., plans to meet London Metal Exchange Chief Executive Matthew Chamberlain to discuss an application to register the company’s nickel for delivery on the exchange at the meeting early next week.
Huayou’s meeting in London could be the first step in bringing a wave of new nickel metal onto the LME, that could boost liquidity and help it reconnect with other parts of the global nickel market.
Chen’s visit follows another important milestone for the LME’s nickel contract, after the exchange announced on 23 Feb that it will finally return to a regular trading day from March 20.
A year after the short squeeze that brought the LME to the brink of collapse, the nickel market remains barely functional, with trading volumes sharply lower and prices regularly experiencing wild swings.
The nickel market remained closed during Asian hours, which was when prices spiked most sharply during the squeeze, making it harder to arbitrage between London and Shanghai contracts and contributing to the fall in volumes. As per reports, the LME is said to be open to the idea of listing a Huayou brand.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
Huayou’s meeting in London could be the first step in bringing a wave of new nickel metal onto the LME, that could boost liquidity and help it reconnect with other parts of the global nickel market.
Chen’s visit follows another important milestone for the LME’s nickel contract, after the exchange announced on 23 Feb that it will finally return to a regular trading day from March 20.
A year after the short squeeze that brought the LME to the brink of collapse, the nickel market remains barely functional, with trading volumes sharply lower and prices regularly experiencing wild swings.
The nickel market remained closed during Asian hours, which was when prices spiked most sharply during the squeeze, making it harder to arbitrage between London and Shanghai contracts and contributing to the fall in volumes. As per reports, the LME is said to be open to the idea of listing a Huayou brand.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
