LONDON — The benchmark three-month nickel contract fell 8% on Thursday morning to hit its new trading limit, as heavy selling continued in metal markets.

According to Refinitiv data, it was worth $41,945 per metric ton when the trade opened. Nickel prices more than doubled in a matter of hours on March 8, climbing above $100,000 a metric ton as one of the world’s top producers, China’s Tsingshan Holding Group, bought large amounts to reduce its short bets on the metal.

Because the price rise was a result of Russia’s intensifying conflict with Ukraine, trading had to stop.

The LME tried to resume nickel trading on Wednesday after the unusual shutdown. The 145-year old exchange was forced to suspend trading due to a technical problem. Trading reopened in London at 2:05 p.m.

—CNBC’s Sam Meredith contributed to this article.