Nickel price volatility resumes as the metal plummets 15% on the London Metal Exchange to hit limit down
- Nickel prices dropped 15% to hit $31,380 a metric ton Monday on the London Metal Exchange.
- After the commodity's epic short squeeze March 9, the exchange imposed upper and lower trading limits to stabilize prices.
Nickel dropped 15% to $31,380 a metric ton Monday, hitting its limit down trading range for the third straight session on the London Metal Exchange.
It also marked another session that the lower limit was reached despite the LME widening the trading range to accommodate high volatility.
As the world's third-largest nickel producer, Russia has caused the commodity to go haywire as its invasion of Ukraine triggered Western sanctions and sparked supply fears.
On March 9, the LME halted nickel trading after an epic short squeeze pushed prices to more than double within hours to $100,00 a metric ton, as China's Tsingshan Holding Group had to cover its short bets.
This prompted the LME to impose upper and lower price caps on the commodity before reopening trading last Wednesday. But a "systems error" led to another trading halt.
On Thursday and Friday, the LME set 8% and 12% trading ranges, respectively, and nickel prices hit those lower limits each day.