The limit on nickel futures for LME was triggered on Thursday as the market remained concerned about supply problems caused by the conflict between Russia and Ukraine and possible short covering in quiet trading.
Aluminum prices gave up earlier gains, and Russia is also a major producer of aluminum. Trading in other basic metals was quiet, investors held a wait-and-see attitude, and prices were volatile.
"A lot of people are sitting on the sidelines to avoid taking risks and don't want to spend their capital on metal financing," said Tom Mulqueen, head of research at Amalgamated Metal Trading. They want to hold cash so that they can weather the storm. "
"more broadly, concerns about financing by trading banks and higher margin requirements for commodities have hit risk appetite."
Nickel rose 15% at the beginning of the LME index period, triggering the limit at $37235 a tonne and holding off gains at the close.
LME nickel jumped to a record high above $100000 a tonne on March 8.
Russia supplies about 10 per cent of the world's nickel and about 6 per cent of the world's aluminium production.
17:00 London time (01:00 Beijing time on March 25th)), LME aluminum for three-month delivery fell $29.50, or 0.81%, to close at $3623.50 a tonne.
Analysts say Russia may seek alternative supplies of Australian alumina from its neighbours, but Chinese smelters themselves need all the raw materials available.
For other metals, LME copper for three-month delivery closed down $89.00, or 0.85%, at $10349.50 a tonne.
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"from January to February, refined nickel imports increased by 90.53% compared with the same period last year, and nickel bean imports continued to decline [SMM interpretation]
"INSG expects a shortage of nickel in the global market this year. SMM, look at it this way. [SMM analysis]
