The London Metal Exchange (LME) halted nickel trading minutes...

The London Metal Exchange (LME) halted nickel trading minutes after it started, citing a technical issue with its new daily limit, as prices plunged immediately when trading resumed after a week-long suspension.

Trading in nickel ended almost as soon as it had begun, and the exchange subsequently said it had suspended trading to investigate a potential technical issue with the trading limit. Only 206 lots, or 1,236 tons of nickel, changed hands before the market stopped trading within seconds on Wednesday morning. Most of those trades took place at the limit price of $45,590 a ton. Several trades appeared to be at prices below the 5% limit, suggesting they may later be canceled by the exchange.

“Following re-open, the market moved to its limit down pricing band," the LME said in a statement. “We have now halted the market to investigate a potential technical issue with the limit down band, and will update as soon as possible."

Today's slump is a sign that last week’s historic short squeeze is easing. It narrows the gap between nickel contracts on the Shanghai Futures Exchange, which have continued trading during the suspension.

More than 8,600 contracts, or 51,600 tons of nickel, were offered for sale in the electronic order book as the market opened, versus 3 contracts bid.