LME imposes price limits for the first time after nickel crisis
When trading resumes Wednesday, price moves for nickel will be constrained to 5% above or below the last closing price before the suspension.
When trading resumes Wednesday, price moves for nickel will be constrained to 5% above or below the last closing price before the suspension.
Nornickel's biggest shareholder, Vladimir Potanin, said the company had managed to secure alternative routes for its palladium deliveries.
All deliveries against nickel contracts will be deferred an extra week, while the nickel price will have a 5% daily fluctuation limit.
When the commodity’s price went vertical last week, the metals industry plunged into turmoil not seen since the Tin Crisis of 1985.
The LME had anticipated nickel trading would restart on Friday, but the criteria for restarting had not then been met.
Under the deal being discussed, the roughly 10 banks that were Xiang Guangda’s counterparts for his nickel bet would extend enough credit to cover his mark-to-market losses.
Nornickel is not yet considering moving to new markets from its traditional ones but does have plans in place.
Chinese producers of nickel sulfate used in EV batteries stopped offering product due to the lack of price visibility.
The LME said the market had become disorderly, with prices not reflecting the physical market.
Country is China's biggest nickel ore supplier.