"Darkest hour" in the metals market: LME delays opening due to malfunction, copper prices plunge 4% after reaching a historic high

Friday, the London Metal Exchange delayed its opening by about an hour due to a technical malfunction, further worsening the already turbulent global metal market. The electronic trading system of the world’s largest metals exchange did not come online until 10 a.m., exactly one hour later than scheduled. The timing of this malfunction was highly sensitive. Just the day before, LME copper prices soared 11% in a single day—the biggest jump since 2008—hitting a record high of $14,500 per ton. Several traders noted that, even before receiving the exchange’s delay notice, the market was already speculating over who might be facing massive losses. After trading resumed, metal prices quickly fell back. Copper prices dropped as much as 3.9% at one point; other metals also fell across the board. By afternoon, the LME benchmark copper contract was down 1.4%, aluminum fell 0.6%, and nickel dropped 2.0%. Previously, the Shanghai Futures Exchange had already recorded declines during that period. This is the second major exchange outage in two months. In November last year, CME Group experienced over 10 hours of trading interruption due to an overheated data center. For the LME, system reliability has been a regulatory focus ever since the 2022 nickel market crisis, when massive short squeezes led some trades to be declared invalid, triggering comprehensive regulatory reforms. **A Test of Technology Amid Extreme Volatility** LME’s technical failure coincided with a rare speculative frenzy in the metals market. Since the start of 2026, global metals trading has been unusually active. According to The Wall Street Journal, trading volumes for six base metals on the Shanghai Futures Exchange reached a historic high in January, and this feverish sentiment has spilled over into LME prices. Several traders pointed out that, with market nerves stretched taut, a system outage could trap those wishing to close positions. If the downtime had dragged on, market turmoil would likely have worsened. During off-hours, calls to LME’s London office went unanswered; spokespeople for its parent company, Hong Kong Exchanges and Clearing Ltd., did not immediately comment on the incident. **Multiple Factors Trigger Market Frenzy** This week’s metal market volatility was caused by a combination of factors: U.S. military threats against Iran; the White House’s renewed tariff threats against allies such as South Korea and Canada; and surging demand for physical assets driven by a weakening dollar—all fanned the flames of this buying spree. Thursday’s historic copper rally was especially eye-catching. The LME’s three-month copper contract jumped as much as 10% intraday and ultimately closed up 11%, surpassing $14,500 per ton—the largest single-day gain since the 2008 financial crisis. **Reliability Issues Back in Focus** Although global exchanges occasionally experience suspensions or delays, this incident has brought LME’s system reliability back under the spotlight. After the 2022 nickel crisis, LME underwent sweeping regulatory reforms, with system stability a key focus. According to The Wall Street Journal, last November CME’s data center malfunction halted trading of stock index futures, Treasury bonds, crude oil, and other products for over 10 hours, marking another major recent exchange technical failure. For traders dealing with extreme market volatility, exchange technology stability is now more critical than ever. While the hour-long delay didn’t cause even greater harm, it was enough to stir anxiety in such a tense market environment. Risk Warning and Disclaimer Markets involve risks; investments must be made cautiously. This article does not constitute personal investment advice, nor does it take into account any individual user’s particular investment objectives, financial situation, or needs. Users should decide whether any opinions, views, or conclusions in this article suit their own circumstances. Investing based on this is at your own risk.