LME to tighten daily price limits for aluminium, copper from July 24

The London Metal Exchange (LME) will reduce the daily price limits for outright contracts in aluminium and copper to 12% from the current 15% starting from July 24, it said in a statement on Wednesday.

The LME imposed price limits on aluminium and copper, the most liquid metals on the LME, following March 2022's significant swings in the price of nickel, which doubled in a matter of hours on the world's largest and oldest metals forum.

The LME suspended nickel trading for more than a week and cancelled trades worth billion of dollars. The price limits later became a permanent tool.

July's change to the price limits is the result of LME adopting a new methodology for calculating them. The methodology was recommended to LME by management consultants Oliver Wyman.