Bank's Response and Internal Scrutiny
JPMorgan did not immediately comment on the matter when contacted by Reuters. The bank's metals business has been closely monitored internally due to its involvement in the turmoil that led to the suspension of nickel trading on the London Metal Exchange (LME) last year.
Cause of Nickel Price Surge
The price spike resulted from China's Tsingshan Holding Group purchasing substantial amounts of nickel to minimize its short positions in the metal.
Client Reductions in Asia
JPMorgan has severed ties with several base metals clients in Asia, especially halting business with privately owned Chinese companies, as per the Bloomberg report.
Focus on Long-Standing Clients
The report further stated that the bank has chosen to continue working with only a select group of large, long-standing clients in the region.