London Metal Exchange to resume nickel trade

Mar 14, 2022, 11:12 PM | Updated: Mar 15, 2022, 4:56 am

LONDON (AP) — The London Metal Exchange plans to resume trading in nickel, a week after it was suspended when the price of the metal surged to over $100,000 a ton.

Trading will resume at 8 a.m. London time on Wednesday, the LME said in a statement, saying a major market client had confirmed it had gained support from banks that might forestall further “disorderly conditions.”

That followed an announcement Monday by Tsingshan Holding Group, a Chinese metals giant, that it had struck a deal with a consortium of its creditors on a “standstill arrangement.” It said the banks agreed not to make margin calls or close out their positions against Tsingshan while the company is resolving its nickel margin and settlement requirements.

“As an integral feature of the agreement, there is provision for the existing hedge positions to be reduced by the Tsingshan group in a fair and orderly manner as abnormal market conditions subside,” it said.

Nickel is used mostly to produce stainless steel and some alloys, but increasingly it is used in batteries, particularly for electric vehicles.

Russia is the world’s third biggest nickel producer and Russian miner Nornickel is a major supplier of the high-grade nickel that is used in stainless steel and electric vehicles.

Tsingshan, founded by tycoon Xiang Guangda, reportedly was caught short while struggling to make margin calls, potentially facing billions of dollars in losses.

The company, which is privately owned and originally started out making car doors and windows, is one of the world’s biggest producers of nickel and stainless steel.

Before trading was suspended, nickel prices had quadrupled in a week amid widening and severe economic sanctions against Russia for its invasion of Ukraine.

The LME said it would specify precise levels for daily price fluctuations later Tuesday.

Prices for copper, zinc and aluminum have fallen this week along with the price of oil and other commodities.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Lead water pipes pulled from underneath the street are seen in Newark, N.J., Oct. 21, 2021. (AP Pho...

Associated Press

Biden to require cities to replace harmful lead pipes within 10 years

The Biden administration has previously said it wants all of the nation's roughly 9 million lead pipes to be removed, and rapidly.

2 days ago

Facebook's Meta logo sign is seen at the company headquarters in Menlo Park, Calif., on, Oct. 28, 2...

Associated Press

Meta shuts down thousands of fake Facebook accounts that were primed to polarize voters ahead of 2024

Meta said it removed 4789 Facebook accounts in China that targeted the United States before next year’s election.

2 days ago

A demonstrator in Tel Aviv holds a sign calling for a cease-fire in the Hamas-Israel war on Nov. 21...

Associated Press

Hamas releases a third group of hostages as part of truce, and says it will seek to extend the deal

The fragile cease-fire between Israel and Hamas was back on track Sunday as the first American was released under a four-day truce.

6 days ago

Men look over the site of a deadly explosion at Al-Ahli Hospital in Gaza City, Wednesday, Oct. 18, ...

Associated Press

New AP analysis of last month’s deadly Gaza hospital explosion rules out widely cited video

The Associated Press is publishing an updated visual analysis of the deadly Oct. 17 explosion at Gaza's Al-Ahli Hospital.

10 days ago

Peggy Simpson holds a photograph of law enforcement carrying Lee Harvey Oswald's gun through a hall...

Associated Press

JFK assassination remembered 60 years later by surviving witnesses to history, including AP reporter

Peggy Simpson is among the last surviving witnesses who are sharing their stories as the nation marks the 60th anniversary.

10 days ago

Israeli Prime Minister Benjamin Netanyahu, chairs the weekly cabinet meeting in Jerusalem, Sunday, ...

Associated Press

Israeli Cabinet approves cease-fire with Hamas; deal includes release of 50 hostages

Israel’s Cabinet on Wednesday approved a cease-fire deal with the Hamas militant group that would bring a temporary halt to a devastating war.

11 days ago

Sponsored Articles

Follow @KTAR923...

The best ways to honor our heroes on Veterans Day and give back to the community

Veterans Day is fast approaching and there's no better way to support our veterans than to donate to the Military Assistance Mission.


Desert Institute for Spine Care

Desert Institute for Spine Care (DISC) wants to help Valley residents address back, neck issues through awake spine surgery

As the weather begins to change, those with back issues can no longer rely on the dry heat to aid their backs. That's where DISC comes in.


Midwestern University

Midwestern University: innovating Arizona health care education

Midwestern University’s Glendale Campus near Loop 101 and 59th Avenue is an established leader in health care education and one of Arizona’s largest and most valuable health care resources.

London Metal Exchange to resume nickel trade