Bloomberg) -- Nickel fell by the new 5% limit as trading...

Bloomberg) -- Nickel fell by the new 5% limit as trading reopened on the London Metal Exchange, in a sign that a short squeeze that has caused chaos across the metals industry may be easing.The drop narrows the gap between nickel contracts on the Shanghai Futures Exchange, which have continued trading during the suspension. Last Tuesday’s historic decision to halt trading came after spiraling prices left some brokers scrambling to pay huge margin calls against bearish positions held by top producer Tsingshan Group Holding Co.The slump is a sign that last week’s historic short squeeze is easing, after Tsingshan secured a standstill agreement with its banks. Commodities markets have been hit by a wave of selling since the LME halted trading to defuse the unprecedented rally that it said posed a systemic threat to its market, although other metals regained some ground on Wednesday.Shanghai Futures Exchange contracts closed up 8.6% at 235,200 yuan ($37,048) a ton, but remained below LME prices before the London market opened.