According to statistics, Russia is a major producer of nickel, supplying about 6% of the world's nickel metal. More than 70% of the world's nickel is used to make stainless steel, and 7% has entered the field of electric vehicle batteries. High-purity "Grade I" nickel is used in electric vehicle batteries, of which 17% is produced by a Russian enterprise.

However, the warming situation in Russia and Ukraine pushed the price of nickel soaring, and nickel futures traded by LME rose by $72,000 this week alone. The agency commented that the LME metal market is being squeezed on a large scale, and a large number of short positions are forced to cover, which is a typical sign of short selling.

The London Metal Exchange (LME) announced the regulatory adjustment after studying the market impact of the situation in Russia and Ukraine and the recent low inventory environment of various basic metals.

Insiders pointed out that this will be beneficial to the normal development of global nickel trading and the whole non-ferrous metal trading, to institutions or enterprises in the direction of LME shorting, and to enterprises with insufficient nickel delivery.

The futures exchange is the place to buy and sell futures contracts and the core of the futures market. It is a non-profit organization, but its non-profit only means that the exchange itself does not conduct trading activities, and it does not mean that it does not attach importance to interest accounting. In this sense, the exchange is also a financially independent for-profit institution, which realizes reasonable economic benefits, including membership fee income, transaction fee income, information service income and other income, on the basis of providing traders with open, fair and just trading places and effective supervision services. A set of institutional rules formulated by it provides a self-management mechanism for the whole futures market, which enables the principle of "openness, fairness and justice" in futures trading to be realized.