What Really Happened the Night the Nickel Market Broke (1)

Matthew Chamberlain had just presided over one of the wildest days in the history of metals markets when he sat down to type a late-night memo to the UK’s financial regulator. But the London Metal Exchange’s chief executive was optimistic.

It was the evening of March 7 last year and nickel prices had surged as much as 90% to an unprecedented $55,000 a ton, causing huge strains across the market. A large Chinese bank had missed a margin call in the hundreds of millions of dollars. The Financial Conduct Authority was beginning to demand updates.

Matthew Chamberlain

Photographer: Paul Yeung/Bloomberg

Now, after a long ...