(Updates throughout to add context about LME reforms and statusof nickel market) LONDON, June 9 (Reuters) - The London Metal Exchange(LME) said on Friday it had received the first application toapprove a new nickel brand for delivery against its nickelcontract since it cut the waiting time for listing to threemonths from six to nine months in March. The 146-year-old exchange has struggled to revive nickelvolumes since prices jumped to a record above $100,000 a tonnein disorderly trade in March 2022, forcing the LME to suspendthe nickel market for the first time since 1988. Many nickel consumers, producers and traders who abandonedthe market in the aftermath are yet to return partly because ofprice volatility, which is restrained by daily price limitsimposed by the world's largest and oldest forum for metalstrading. At the end of March, the LME, owned by Hong Kong Exchangesand Clearing (HKEx), announced measures to address lowinventory levels and boost liquidity in electronic trading. The LME said it had received an application to approvenickel produced by Quzhou Huayou Cobalt New Material Co, asubsidiary of China's Zhejiang Huayou Cobalt Co , asa list brand. "It's a start and could help with liquidity of the contract,but it's not going to be a game changer," a trader said. "Stocksneed replenishing, it's going to take more than one new brandfor that to happen." The LME said it expects more fast-track applications incoming months. Nickel inventories in LME registered warehouses at 37,230tonnes are at their lowest since 2007. Part of the problem is that the nickel market is nowdominated by nickel pig iron (NPI), a lower grade nickel usedmostly by stainless steel producers, which cannot be deliveredagainst the LME's contract. NPI is expected to amount to more than 50% of globalsupplies estimated at 3.2 million metric tons this year comparedwith the 18% that can be delivered against the LME's contract,according to Macquarie analyst Jim Lennon. The LME said in March it would work with China's QianhaiMercantile Exchange to introduce a new Class II nickel spotmarket in China. (Reporting by Polina Devitt and Pratima Desai; Editing byLouise Heavens, Kirsten Donovan)
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