THE China Nonferrous Metals Industry Association said Friday it would help regulators stabilize nickel prices after a record surge last week and warned producers to prevent malicious speculation.

Prices on the London Metal Exchange (LME) more than doubled Tuesday to over US$100,000 a ton, forcing the bourse to halt nickel trading and erase deals.

Shanghai nickel futures soared more than 40 percent last week before being suspended Thursday and plunged 17 percent to a trading limit after trade resumed Friday.

“Current nickel prices have seriously deviated from the fundamentals, losing the guidance significance to the spot market,” the association’s nickel branch said in a statement.

The association said it would monitor the situation closely and urged industry participants to maintain market order, preventing irrational price spikes in nonferrous products. (SD-Agencies)