The price of nickel on the London Metal Exchange drops by 12%, triggering a limit down again.

• According to Refinitiv data, the price opened at $36,915 per metric ton.
• The 145-year-old exchange has experienced a tumultuous two weeks with price spikes, technical issues, and trading halts.
• On Wednesday, the LME installed a trading range of 5%, which was increased to 8% on Thursday and 12% on Friday.

On Friday morning, the three-month nickel benchmark contract in London fell 12%, reaching a new trading limit due to heavy selling on international metal markets.

As Refinitiv data shows, the price of the commodity reached $36,915 per metric ton when it began trading, marking a significant increase in value. Despite being a 145-year-old exchange, it has experienced a tumultuous two weeks with price fluctuations, technical difficulties, and trading suspensions.

On March 8, nickel prices surged more than double in a short period, reaching over $100,000 per metric ton, as China's Tsingshan Holding Group purchased large quantities to offset its short positions on the metal. The sudden increase in price caused trading to be halted, exacerbating an already upward trend in metals due to Russia's escalating conflict in Ukraine.

On Wednesday, the LME tried to resume nickel trading after the unexpected shutdown. However, a "systems error" allowed a limited number of trades to occur below the newly established daily price limit, resulting in the exchange being temporarily halted again.

On Wednesday, the LME installed a trading range of 5%, which was increased to 8% on Thursday and 12% on Friday.

Matthew Chamberlain, CEO of the LME, stated on Wednesday during an interview with CNBC's "Squawk Box Europe" that the exchange is fully aware of the impact of the incident and is taking steps to prevent it from happening again.

Chamberlain stated that the LME had intentionally focused on stability by establishing a limited range of daily trading limits. However, if the exchange perceived a more organized market, these limits could potentially be broadened.

The ongoing conflict between Russia and Ukraine has caused commodity prices to rise due to supply concerns. Russia is a significant producer and exporter of not only energy but also metals and grains. In fact, Russia is the world's third-largest producer of nickel, a crucial component in stainless steel and lithium-ion batteries.

—CNBC’s Sam Meredith contributed to this article.