Base metals prices on the London Metal Exchange were lower across the board during morning trading on Thursday February 22, with a sell-off taking place following China's return to the market.
Prices rallied at the LME close on Wednesday despite thin volumes and a lack of drivers, but this morning all gains were undone. Nickel is in its usual cycle of plummeting significantly just hours after staging a rally. The metal closed 2% higher yesterday but is now down $380 per tonne from that level as it continues to find resistance at $14,000 per tonne. "The [most] surprising thing arguably for many was why prices rallied so hard into yesterday's London close. That rally I assume was in no small part due to the mean reversion trade being put on too early and the day traders getting jammed out of shorts in...