The nickel market steadied on Thursday after the London Metal Exchange, the world’s biggest base metals exchange, was forced to make an extraordinary intervention in the nickel market on Wednesday to head off the risk of defaults on trades by speculators as the metal soared to a record high.

Three-month nickel retreated to $28,250 a tonne after Wednesday’s price surge to a record $29,200 a tonne amid what one analyst called “panic” covering of short positions, where traders bet on a fall in the metal’s price.