LONDON: Nickel prices slumped on Thursday after the London Metal Exchange (LME) announced plans to widen its contract while copper steadied on signals of recovering demand in top metals consumer China.

Three-month LME nickel had slid 2.6% to $23,135 a tonne by 1610 GMT after the LME launched sweeping measures to revive its flagging nickel contract.

The plans include cutting waiting times and scrapping fees for new brands of nickel that can be delivered against its contract, potentially increasing the amount of nickel available through the exchange.

The LME also said it might add coarse nickel powder as eligible for delivery.

LME copper was little changed at $9,000 a tonne after falling as much as 0.7% in earlier trade.

China’s top smelters agreed on a lower guide price for treatment and refining charges (TC/RCs) for copper concentrate processing in the second quarter of 2023, sources said.

Spot TC/RCs have also declined, indicating lower availability of concentrate - partially treated ore which smelters process to make refined copper.

“That tells you that either smelter demand is very strong, reflecting decent demand downstream, or the mine side is disappointing,” said Dan Smith, head of research at Amalgamated Metal Trading.

“We know that the Chinese smelters are ramping up because they’re able to sell that stuff, so something’s pretty tight in the supply chain.”

Top metals consumer China’s factory activity is likely to have grown at a slower pace in March, a Reuters poll showed on Wednesday, suggesting the economic recovery is uneven in the light of weak global demand and a property slump.