The nickel market is chronically short of material with LME stockpiles currently around 6,000 tonnes. As a result yesterday the London Metal Exchange (LME) announced that it had imposed a backwardation limit of $300.00 per tonne per day in the nickel market. Additionally they have suspended Lending Guidance in respect of nickel positions.
In imposing the conditions LME Chief Executive Simon Heale said:
“Nickel stocks are at historically low levels and we now have a genuine material shortage. Our first priority is to ensure that trading remains orderly and to prevent the risk of settlement defaults. The Special Committee has been constantly monitoring nickel stocks, the effect of those trading for the nearby prompt dates and conditions in the nickel market. The Committee will keep this under constant review and will remove the backwardation limit and reintroduce Lending Guidance as soon as it considers it prudent to do so.”
HI ALL......any thoughts???
The nickel market is chronically short of material with LME...
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)