Critical Minerals and Energy Intelligence

Looking to Buy Some Physical Nickel?

As part of the response to the LME chaos last year, UK-based Global Commodities Holdings (GCH) is rolling out a brand-new physical nickel trading platform, and it’s set to go live in late February. As a reminder, prices skyrocketed to more than $100,000 per tonne and the LME even went as far as to cancel trades. The fallout has been occurring over a long period of time and it’s clear that certainly some traders have been keen to use alternatives to the LME. Looks like GCH is hoping to fill that need.

Perhaps ironically, the head of GCH is Martin Abbott – the former CEO of the LME. Anyway, GCH already runs a successful coal trading platform and, just as importantly, the new nickel venture has some heavy hitters backing it, including Glencore, Anglo American, BHP, and Rio Tinto.

So, how will it work? Well, producers and buyers will trade directly. No middlemen, no hedge funds, no algorithms. Just real players in the physical market. And yes, Russian nickel is allowed. Abbott says the prices set on this new platform will eventually feed into a nickel index, which could later be used to build a futures contract – possibly giving the LME some competition.

I’m not at all surprised by the turn of events. A lot of market players were shocked at the decisions and actions taken by the LME, and it was only a matter of time before the wheels of change started turning. Watch this space because I don’t believe things will return to normal for the disgraced LME.

Anthony Milewski

Chairman, Nickel 28 Capital

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