Crisis for the London Metal Exchange!
Investigations and law suits are reeking havoc on the London Metal Exchange. In which they are questioning the handling of the nickel short squeeze back in March 2022 where nickel was suspended for 9 days.
Basically had strong position on the upside and the LME just went out and canceled the trades which is unprecedented in a free market system.
This is only the latest in a long line of challenges for nickel in particular on the London metal exchange.
As we referenced before there was massive fraud as warehouses were up filled with rocks and not nickel.
And just another thing to add to the confusion of nickel pricing is that class 1 and class 2 of nickel are even contributors to the over 2 million tons of nickel produced and consumed each year
, but the LME is only based on class 1 nickel so it’s missing half the market in its pricing analysis.
The overall theme here is that LME overall supremacy in nickel pricing is in jeopardy over all these different claims, so trust must be regained in order to prevent this from happening.