Market update for OSTP Group Customers:
Due to breach of the daily price limits set for trading on Friday 18th March the following LME Notices were released.
LME Notice: 22/079.
Nickel Contracts traded in the Ring traded down to the pre-set daily price limit in the second Ring session (R2). As a result, the Nickel Official Prices are, for the purposes of the LME’s pricing procedures, subject to a Disruption Event.
LME Notice: 22/080.
Updates the daily upper and lower price limits in either direction (“daily price limits”) for outright Contracts in Nickel on all Execution Venues (which have increased from 12% to 15%) with effect from 21 March 2022.
Therefore at this point in time OSTP Group continues with its policy announced earlier ie:
OSTP therefore will continue to offer only on a daily basis with all offers valid for 1 day. We regret that this is necessary but these unprecedented conditions leave us with no alternative currently.
It is our strong belief that within a matter of a few days a confirmed stabilised LME trading rate will be established for Nickel which is necessary for the calculation and establishment of the OSTP April Monthly AAF rates and updated base prices. 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