The London Metal Exchange (LME) said today that it is watching nickel as well as the rest of the base metals complex closely, amid a surge in prices as markets weigh the supply impact of an expansion of sanctions against major aluminium and nickel producer Russia.
Benchmark nickel jumped by over 60pc today to a high of $46,850/t, the firmest since 5 June 2007, and has risen by almost 90pc since Russian president Vladimir Putin first ordered troops into Ukraine on 22 February.
"We note the large price move in nickel and are monitoring all metals closely to ensure market activity remains orderly," LME told Argus. "We have further options available to ensure continued market orderliness if these are required."
When record low stocks led to extreme tightness in the copper market in October 2021, LME implemented new copper trading rules, including the amendment of certain requirements within the lending rules, a limit on the backwardation in the shortest-term spread, and a deferred delivery mechanism for certain contracts.
LME gave no indication on how it intends to respond given the recent nickel surge, and whether any further action would be on the same lines as that of copper last year.