(Bloomberg) — The London Metal Exchange said it would allow price moves of up to 12% in nickel after futures plunged by the maximum allowed for a second day, as the market resets in fits and starts from last week’s historic short squeeze.
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Prices dropped by the previous 8% limit on Thursday, after another glitchy start to trading that left brokers stunned as the LME was forced to delay the open. Nickel futures on the exchange have now dropped 58% from the high reached in chaotic trading on the morning of March 8, but only a handful of contracts have traded and there are still effectively no buyers at the limit-down price of $41,945 a ton.
The latest price drop brings the LME prices a little closer to the value of futures in Shanghai, which continued to trade during the week-long suspension imposed by the LME to try and restore order to the market. It’s also…
