The London Metal Exchange will resume trading of nickel contracts at 8 a.m. London time on Wednesday March 16, the exchange said in a notice on Monday.
“Trading shall resume on LMEselect in the usual way, with the market opening in a pre-open state, but pre-open shall commence at 07:30 a.m. London time on the Resumption Date.”
The LME was forced to halt nickel trading and cancel trades after prices surged on March 8 to more than $100,000 per tonne after China’s Tsingshan Holding Group bought large amounts to reduce its short positions in the metal.
The resumption comes after Tsingshan said on Monday it had reached an agreement with banks under which they will not make margin calls on or close out the producer’s nickel positions on the LME, a move sources said should help calm the market.
Britain’s Financial Conduct Authority (FCA) and the Bank of England had been in talks with the LME about the resumption of a fair and orderly market in nickel.
The LME said in its notice that it had decided to set daily price limits in either direction for all base metal outright contracts, on all execution venues.
Daily price limits for all base metal outright contracts except nickel, will take effect from the start of trading on March 15. Daily price limits for nickel will apply from the start of trading on March 16.
(By Ashitha Shivaprasad; Editing by Richard Pullin)
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