China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
The London Metal Exchange (LME) said on Friday it had appointed John Williamson, currently a non-executive director, as interim chairman from the end of April, when current Chair Gay Huey Evans steps down.
Williamson’s appointment comes as the world’s largest and oldest metals forum grapples with slumping nickel volumes after the chaos in March 2022 when the LME suspended nickel trading for more than a week.
“Recent years have presented challenges for both the industry and the business but I am certain of the LME’s continued role as a vital global marketplace for the pricing and trading of metals,” Williamson said in the statement.
Williamson served on the board of Hong Kong Exchanges and Clearing, owner of the 146-year old LME, from 2008 to 2021 as non-executive director. He was appointed to the LME board in September 2021.
Metal industry sources are surprised that Williamson’s appointment is on an interim basis, which they say creates uncertainty during a tumultuous time.
The LME declined to comment on why the appointment was on an interim basis.
Williamson will oversee the exchange as it comes under scrutiny from Britain’s financial watchdog and lawsuits for the trades the LME cancelled on March 8, 2022 when nickel prices doubled to a record above $100,000 a tonne in a few hours.
A lawsuit brought by Elliott Associates and Jane Street Global Trading against the LME for cancelling nickel trades will be heard in a London court on June 20-22.
Britain’s Financial Conduct Authority in March launched an unprecedented probe into potential misconduct over the nickel crisis last year, which further damaged the LME’s already bruised reputation.
Since March 2022, the exchange has introduced daily price limits to control volatility of prices of nickel and other metals such as copper and aluminum trading on the exchange.
(By Polina Devitt and Pratima Desai; Editing by John Stonestreet, Robert Birsel and Emelia Sithole-Matarise)
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