LME Fights to Regain Trust After Last Year’s Nickel Crisis (Bloomberg News – May 16, 2023)

https://www.bnnbloomberg.ca/

(Bloomberg) — The embattled London Metal Exchange is still trying to rebuild faith in its nickel contract after an epic short squeeze last year, according to Chief Executive Officer Matthew Chamberlain.

The crisis last March, when the metal used in stainless steel and electric vehicle batteries spiked 250% in little more than 24 hours, brought the venerable LME to the brink of collapse. It raised doubts about the exchange’s viability as the world’s benchmark pricing mechanism for nickel and was followed by plunging trading volumes and frequent wild price swings.

“Every day, every week, every month you are competing for people’s confidence,” Chamberlain said in a Bloomberg TV interview in Hong Kong. “Trust doesn’t arise overnight, but I really hope people feel that we are doing the right things to strengthen this.”

The LME didn’t restart nickel trading in Asian hours, the time in which prices jumped most dramatically, until this March, a year after the crisis.

For the rest of this article: https://www.bnnbloomberg.ca/lme-fights-to-regain-trust-after-last-year-s-nickel-crisis-1.1920709#:~:text=%28Bloomberg%29%20–%20The%20embattled%20London%20Metal%20Exchange%20is,year%2C%20according%20to%20Chief%20Executive%20Officer%20Matthew%20Chamberlain.