Market update for OSTP Group Customers:
The anticipated LME “Resumption Date” was not confirmed by 2.00pm GMT today, therefore we understand the suspension of trading in all Contracts in Nickel continues at least until 14th March.
It is reported that EUROFER has called on the London Metal Exchange (LME) and the Financial Conduct Authority (FCA) to take the necessary action to resolve the massive, artificial fluctuations in nickel prices and impose the indispensable measures to ensure it does not reoccur. EUROFER also requests a commitment on transparency on moves by single or group of market participants exceeding regular participation and trading limits.
They state that “In the last days, and since markets opened on 7 March in particular, we have seen an unprecedented surge in nickel prices that cannot be explained by supply and demand, nor by the sanctions recently imposed on Russia”, said Axel Eggert, Director General of the European Steel Association (EUROFER), “no other commodity has seen the same price increase as nickel in recent days”.
Further EUROFER has requested the LME to keep the market closed until stability and normal price levels are restored.
We confirm once again that OSTP’s best advice to our customers is not to panic but to engage in dialogue with us through your normal contact routes so we can together navigate these times with least negative impact to all parties and maintain as best as possible needed material supplies.
It should be naturally expected that material prices base and AAF rates will increase significantly in the coming months and current offers made by OSTP Group reflect the best known information available.
We remain committed to maintain regular news updates on our website for your information and guidance