China’s Nickel Sector Weighs Risks After London Halts Trading

China’s nickel sector is reeling from a price spike that caused a historic trading freeze on the London Metal Exchange (LME), as the companies struggle to make payments to cover raised margin requirements and soaring imported costs.

“When the gods fight, us mortals suffer,” a senior executive at a domestic nickel producer who asked to remain anonymous told Caixin on Saturday. “While the big bulls and big bears are battling the nickel futures contract prices, those like us who just hold futures as a hedging strategy, are now facing the risk of forced liquidation.”