London Metal Exchange hikes aluminium, nickel margins

The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville/File Photo

March 4 (Reuters) - The London Metal Exchange (LME) on Friday raised its margin requirements for aluminium and nickel contracts effective at close of business on March 8 after a rally fueled by the escalating Russia-Ukraine conflict.

Russia is one of the world's biggest exporters of key raw materials such as aluminium and nickel traded on the LME. The possible exclusion of supplies from the country due to sanctions has sent traders and importers into a frenzy. read more

The exchange raised margin requirements for aluminium contracts by 10% to $242 per tonne, while hiking margin requirements for nickel contracts by 12.5% to $2,250 a tonnes.

Aluminium prices hit a record $3,867 a tonne on Friday, a 17% rise since Feb. 23, while nickel touched a near 14-year peak of $30,295 a tonne, climbing 24% since Feb. 23. read more

Margins for other metals traded on the LME such as copper, zinc, lead and tin were unchanged.

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Reporting by Brijesh Patel in Bengaluru; Editing by Mark Porter

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