Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

LME expands nickel committee to help improve contract, dwindling volumes

Published Jan 26, 2023 12:49
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Traders work on the floor of the London Metal Exchange in London, Britain, September 27, 2018. REUTERS/Simon Dawson/File Photo
 
NICKEL
-0.82%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
.LMEX
+0.32%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Pratima Desai

LONDON (Reuters) - The London Metal Exchange has added four new members to its nickel market committee to widen the range of views on how to improve its nickel contract, where volumes have crashed after the trading mayhem last March.

A stampede to cover short positions resulted in nickel prices spiking more than 50% in a matter of hours to a record above $100,000 a tonne on March 8 when the LME suspended nickel trade for more than a week, for which it is being investigated by British regulators.

Nickel is mostly used to make stainless steel, but it is also a key material for the electric vehicle industry, where it is used in the cathode component of batteries.

Nickel volumes on the LME, the world's oldest and largest forum for industrial metals trading, crashed 28% last year from 2021. The contract remains broken due to many users abandoning the market and the suspension of trading in Asian hours.

The exchange said the additions to the nickel committee would "further broaden representation in committee discussions – particularly concerning any potential enhancements to the contract".

"The LME’s immediate priority is to work with industry participants to ensure nickel pricing and trading meets their evolving needs as we look to reopen nickel trading in Asian hours and build up liquidity in the contract."

Sources with knowledge of the matter told Reuters earlier this month that Britain's financial watchdog is blocking the restart of London Metal Exchange nickel trade in Asian hours due to doubts about the LME's ability to run an orderly market in that time zone.

Part of the problem for the exchange is the nickel that can be delivered against the LME's contract. Last year this amounted to only 650,000 tonnes or around 21% of global production compared with 50% in 2012.

The exchange is looking into the potential for a nickel pig iron contract, mostly from Indonesia, expected to account for nearly half of global nickel supplies estimated at more than three million tonnes this year.

The new members include global mining giant BHP Group, stainless steel producer Aperam and trading companies Cronimet and IXM.

The LME is owned by Hong Kong Exchanges and Clearing Ltd..

 

 

LME expands nickel committee to help improve contract, dwindling volumes
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email