On Friday, the London Metal Exchange delayed its opening by approximately one hour due to a technical glitch, exacerbating the already severe volatility gripping global metal markets. The electronic trading system of the world's largest metals bourse did not commence operations until 10 a.m., a full hour later than scheduled. The timing of this malfunction was exceptionally sensitive. Just the day before, LME copper prices had surged by 11% in a single day, marking the largest increase since 2008 and reaching a historic high of $14,500 per tonne. Multiple traders indicated that before receiving the exchange's delay notification, the market was already speculating about which participants might be facing substantial losses. Following the resumption of trading, metal prices rapidly retreated. Copper prices fell by as much as 3.9%, while other metals also declined across the board. By the afternoon, the LME benchmark copper contract was down 1.4%, aluminum had fallen 0.6%, and nickel had dropped 2.0%. The Shanghai Futures Exchange had already seen declines during this period. This incident marks the second major exchange failure within two months. Last November, the CME Group experienced a trading halt lasting over 10 hours due to overheating in a data center. For the LME, system reliability has been a key regulatory focus since the 2022 nickel market crisis, when a massive short squeeze led to some trades being cancelled and triggered comprehensive regulatory reforms.
Technical Test Under Extreme Volatility The LME's technical issues coincided with a rare speculative frenzy in the metal markets. Since the beginning of 2026, global metal markets have been exceptionally active. According to The Wall Street Journal, trading volume for six primary metals on the Shanghai Futures Exchange hit a record high in January, with this fervor spilling over to influence LME prices. Several traders pointed out that at a time of highly strained market nerves, a system failure could trap traders hoping to close out positions. A prolonged outage would likely intensify market chaos. Calls to the LME's London office after hours went unanswered, and a spokesperson for its parent company, Hong Kong Exchanges and Clearing Limited, did not immediately comment on the incident.
Multiple Factors Ignite Market Frenzy The extreme volatility in metal markets this week was fueled by a confluence of factors. The threat of US military action against Iran, the White House's renewed tariff threats against allies like South Korea and Canada, and demand for physical assets driven by a weaker US dollar collectively ignited this buying spree. Thursday's historic surge in copper prices was particularly striking. The LME three-month copper contract skyrocketed by as much as 10% intraday, ultimately closing up 11% and breaking through the $14,500 per tonne barrier, representing the largest single-day gain since the 2008 financial crisis.
Reliability Concerns Back in Focus Although trading suspensions or delays occasionally occur at global exchanges, this incident has thrust the LME's system reliability back into the spotlight. Following the 2022 nickel crisis, the LME implemented sweeping regulatory reforms, with system stability becoming a key area of focus. As reported by The Wall Street Journal, last November's CME Group data center failure halted trading in stock index futures, government bonds, crude oil, and other products for over 10 hours, constituting another significant recent exchange technical failure. For traders grappling with extreme market swings, the technical stability of exchanges is paramount. While the one-hour delay did not cause more severe consequences, it was sufficient to provoke unease within an already highly tense market environment.
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