The LME will postpone the resumption of nickel trading in Asian time from Monday 20 March 2023 to Monday 27 March 2023.
The LME has been concerned about reports of irregularities in the physical market. The exchange recently learned of irregularities in shipments of physical nickel from one of the warehouses of an LME-licensed storage company.
The storage company has promptly conducted a full inspection of nickel receipts at the facility and has been in communication with the LME throughout the process. As a result of the inspection, a small number of nickel receipts (nine in total) at the site were found to be non-compliant with the contract terms. The total number of nickel receipts currently stands at 6337, so non-compliant receipts account for 0.14 per cent of nickel stocks. LME has confirmed that these nine warehouse receipts are invalid and therefore cannot be delivered in accordance with the LME contract, and has informed the warehouse holder.
Out of an abundance of caution, the LME has asked all licensed storage companies to re-examine all bags of nickel. Due to the uncertainty this may cause to market prices, the LME will postpone the resumption of nickel trading in Asian time from Monday 20 March 2023 to Monday 27 March 2023.
