Business · Markets · 15 hrs ago
London Metal Exchange rebounds after 2022 nickel crisis
The 149-year-old London Metal Exchange has recovered from the nickel crisis that threatened it in 2022.
Its trading volumes reached a record in 2025, and average daily volumes rose 16% year on year in the first nine months of 2026.
The exchange says reforms made after the crisis helped, while wars, tariffs and greater investor interest in metals also contributed to the rebound.
Later this month, it plans to launch a steel contract linked to Shanghai prices, a first step in which Shanghai Futures Exchange prices for a metal will be available on another exchange.
The move signals closer cooperation between the London and Shanghai exchanges after they had previously clashed over LME warehouses in mainland China.
The new contract could help revive the LME's steel business, where trading volumes fell 29% year on year in the first nine months of 2026.
The exchange is also developing its metals pricing work through a Dubai subsidiary, which has begun publishing European aluminium and copper assessments.
The London Metal Exchange has recovered from the 2022 nickel crisis and recorded record trading volumes in 2025.
Average daily trading volume rose 16% year on year from January to September 2026.
The exchange plans to launch a hot-rolled coil steel contract linked to the Shanghai Futures Exchange later in October.
The new contract marks the first time the Shanghai Futures Exchange has made a price for one of its metals available on another exchange.
The LME’s steel contracts have struggled, with overall trading volumes down 29% year on year in the first nine months of 2026.
- Who
- The London Metal Exchange, owned by Hong Kong Exchanges and Clearing, and the Shanghai Futures Exchange.
- What
- The LME has rebounded after the 2022 nickel crisis and plans a new steel contract linked to the Shanghai Futures Exchange.
- When
- The article was published on October 17, 2026. The new contract is due to begin trading later that month.
- Where
- London; the new contract will be linked to a price on the Shanghai Futures Exchange.
- Why
- Trading has recovered partly because of the LME’s market reform programme, as well as wars, tariffs and increased investor interest in metals.
This story does not have two clearly opposing sides.
Hong Kong Exchanges and Clearing acquired the London Metal Exchange.
The nickel crisis exposed weaknesses in the LME’s market.
The LME recorded its highest-ever trading volumes.
Average daily trading volume rose 16% year on year, while overall steel trading volumes fell 29%.
The LME is due to begin trading a hot-rolled coil steel contract linked to the Shanghai Futures Exchange.
- LME age
- 149 years
- Trading volumes
- Record levels in 2025
- Average daily volume
- Up 16% year on year, January–September 2026
- Steel trading volumes
- Down 29% year on year, January–September 2026
- New contract
- Hot-rolled coil steel, linked to the Shanghai Futures Exchange