EUROFER Urges Immediate Action to Prevent Artificial Surges in Nickel Prices

SEATTLE (Scrap Monster): The European Steel Association (EUROFER) has urged the London Metal Exchange (LME) and the Financial Conduct Authority (FCA) to take urgent action to prevent any further occurrence of massive, artificial surges in nickel prices. It also requested transparency on trading moves by single or group of market participants.

In a press statement, Axel Eggert, Director General, EUROFER noted that in the last few days and especially since the market opening on March 7^th, there has been an unprecedented surge in nickel prices, which cannot be explained either by supply and demand or by the recent sanctions imposed on Russia. Furthermore, he said that no other commodity has witnessed such high fluctuation in prices as nickel.

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Eggert observed that such market anomalies have occurred before as well. For instance, a similar situation of possible market manipulation by a specific player was reported in the summer of 2019. The issue must be solved once for all, so as to ensure that such an event does not happen a third time. He warned that such massive fluctuations could seriously impact both the European nickel users and consumers.

EUROFER requested the LME to keep the market closed until restoration of stability and normal price levels. Furthermore, it also demanded thorough investigation on trading practices by certain market players.