London's nickel market will stay closed at least until next week, a person familiar with the exchange said, giving the London Metal Exchange more time to resolve a crisis caused by a huge loss-making trade originating in China.

The LME paused trading in nickel on 8 March, the first time it had suspended a market since 1985. The exchange had said trading might resume as early as 11 March. However, the LME failed to alert traders by 2pm London time that the market would reopen, signalling that no trading in nickel would take place at least until 14 March.