London Metal Exchange tries to move on from nickel crisis

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London Metal Exchange tries to move on from nickel crisis
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This year’s annual gathering of the world’s metals industry felt like a return to bygone day

The London Metal Exchange’s Monday seminar was packed out, the Tuesday black-tie dinner was as glitzy as ever and the champagne and wine flowed liberally in the many meetings and cocktail parties taking place across London’s West End.

But while the LME turns inwards to heal, it risks being outflanked by rivals looking to get in on the green transition metals boom.The LME can take comfort from a return to volume growth this year. Trading activity rose by 5.2% year-on-year in the first nine months of 2023 after sliding by 8.3% in 2022.

Open interest has grown from 140,166 contracts at the end of January to 184,571 at the end of September but is still some way off participation levels prior to March last year. The Shanghai Futures Exchange is also looking at its nickel offering, although its interests are closely aligned with those of the LME.

No metals seminar is these days complete without a discussion of the booming electric vehicle market.

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