LONDON - Nickel fell almost six percent on Thursday after the...

LONDON - Nickel fell almost six percent on Thursday after the London Metal Exchange changed lending rules to free up more metal, analysts said.

The nickel market, with prices hitting $51,800 a tonne in May and rising some 40 percent this year, has been characterised by extreme tightness with low stocks in LME warehouses and strong use in China.

The LME amended its lending rules, lowering the limit at which holders of dominant long positions are required to lend to the market, late on Wednesday.

Nickel for delivery in three months MNI3 closed down $2,700 at $42,900 per tonne, its lowest since March 27.