March 23, 2022 – For the fourth time since nickel trading had to be restarted on the London Metal Exchange (LME), an incident referred to by the LME as a Price Disruption Event has occurred. As the LME officially announced on its website on March 23, 2022, all trades agreed in the relevant ring session (R2) will be annulled.
Nickel shoots up by almost 15%
The nickel price had risen today on the LME within a very short time just below the new daily limit of 15% and stood last at about $32,375 per ton, the LME had to pull the ripcord in the so-called ring trading apparently once again.
After in the last days the price had been artificially pushed down to the level of approx. $28,159 on Tuesday (22 March 2022), it had opened on Wednesday morning (23 March 2022) with approx. $29,700 in London.
Again illegal intervention of the LME(?)
Once again, the LME’s intervention in the ring trade raises questions and whether it might not be another illegal intervention.
The strong price increase over the course of the day, might not have pleased the lenders, to which among other things the financial house J.P. Morgan Chase belongs, of the Chinese stainless steel producer Tsingshan particularly.
This in turn draws attention to the shareholders of the London Metal Exchange and the Hong Kong Exchange – which, not particularly surprisingly, are also largely owned by J.P. Morgan Chase corporate conglomerate.
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