The London Metal Exchange halted nickel trading on its electronic system shortly after it reopened on Wednesday after technical issues allowed a small number of trades to be executed below the new daily price limit.
The exchange said all nickel trades executed on LMEselect, its electronic trading system, at the lower daily price limit would remain but those below would be cancelled. Russia accounts for about 10% of global nickel output and traders were concerned supplies could be constrained by Western sanctions on Moscow.
One of the main reasons nickel trading had resumed trading is that Tsingshan has reached an agreement with a consortium of banks this week under which they will not make margin calls on, or close out, its nickel positions on the exchange.