EUROFER Called on LME to Suspend Nickel Trading until Stability

SHANGHAI, Mar 10 (SMM) - On Wednesday, European Steel Association (EUROFER) called on the LME to suspend nickel trading until stability and normal prices are restored. Earlier this week, nickel prices doubled in a few hours.

EUROFER claimed in the statement that LME and the Financial Conduct Authority should take necessary actions to “resolve the massive, artificial fluctuations in nickel prices.” 

The LME nickel prices doubled on Tuesday, rising to more than $100,000/mt. LME had to suspend nickel trading and declare some transactions invalid. Sources stated that the short covering of one of the world’s largest producers was responsible for the skyrocketed prices.

Axel Eggert, Director General of EUROFER, said, “In the last days, we have seen an unprecedented surge in nickel prices that cannot be explained by supply and demand, nor by the sanctions recently imposed on Russia”.

EUROFER requested investigations on moves by market participants to determine whether these behaviours caused abuse or disorder in the market.