LME’s Plan to Revive Nickel Gets Boost With Chinese Listing Bid

Huayou was one of the key players in last year's crisis, as a holder of short positions that became deeply unprofitable as prices spiked.

Mark Burton

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China's Zhejiang Huayou Cobalt Co. applied to list its nickel on the London Metal Exchange, becoming the first producer to use a fast-track registration process designed to help rebuild liquidity in the exchange's contract following last year's short squeeze.

Like top producer Tsingshan Holding Group Co., Huayou was one of the key players in last year's crisis, as a holder of short positions that became deeply unprofitable as prices spiked. Tsingshan and Huayou are both increasing production of refined nickel — partly in response to a tighter market for refined metal than other products, and partly as a step to limit the severity of any future squeezes.