LME forced to halt nickel trading, cancel deals, after prices top $100,000

[kmiklas]

https://www.reuters.com/business/lm...g-day-after-prices-see-record-run-2022-03-08/

LONDON, March 8 (Reuters) - The London Metal Exchange (LME) was forced to halt nickel trading and cancel trades after prices doubled on Tuesday to more than $100,000 per tonne in a surge sources blamed on short covering by one of the world's top producers.

The LME's shock move came as Western sanctions threatened supply from major producer Russia and marked the biggest crisis to hit the 145-year-old exchange in decades.

In the 1990s a rogue Sumitomo trader tried to corner the copper market and tin trading was stopped for five years in the 1980s.

 

[maxinger]

LME Nickel trading to stop trading for a few days?
China's Tsingshan Holding Group which held short position must have a deep pocket.


Anyway, Moscow Stock Exchange is still closed.
will it also close for 5 years?

 

[noddyboy]

https://www.reuters.com/business/lm...g-day-after-prices-see-record-run-2022-03-08/

LONDON, March 8 (Reuters) - The London Metal Exchange (LME) was forced to halt nickel trading and cancel trades after prices doubled on Tuesday to more than $100,000 per tonne in a surge sources blamed on short covering by one of the world's top producers.

The LME's shock move came as Western sanctions threatened supply from major producer Russia and marked the biggest crisis to hit the 145-year-old exchange in decades.

In the 1990s a rogue Sumitomo trader tried to corner the copper market and tin trading was stopped for five years in the 1980s.

So what happens to open positions? Must traders maintain the margins and never see the light of day of profits or losses?

 

[globalarbtrader]

LME Nickel trading to stop trading for a few days?
China's Tsingshan Holding Group which held short position must have a deep pocket.

They're long physical, probably close to net hedged. Issue is paying the margin calls.

GAT

 

[JamesJ]

Reminds me of the negative oil stuff 2 years ago...
Shows how fragile those commodity future markets are, where a seemingly delta neutral position (eg. long physical short future) can bankrupt you due to erratic market behaviour.

 

[wpfund]

Yep! Caveat emptor!! These are the risks involved in trading these markets. Though rarely actualized one has to be prepared

 

[zdreg]

https://www.reuters.com/business/lm...g-day-after-prices-see-record-run-2022-03-08/

LONDON, March 8 (Reuters) - The London Metal Exchange (LME) was forced to halt nickel trading and cancel trades after prices doubled on Tuesday to more than $100,000 per tonne in a surge sources blamed on short covering by one of the world's top producers.

The LME's shock move came as Western sanctions threatened supply from major producer Russia and marked the biggest crisis to hit the 145-year-old exchange in decades.

In the 1990s a rogue Sumitomo trader tried to corner the copper market and tin trading was stopped for five years in the 1980s.

https://www.jstor.org/stable/2202064