In a statement the LME said the price movements were unprecedented and the decision had been made on "orderly market grounds".
Tuesday nickel trades were also cancelled.
"The LME will give consideration to a multi-day closure given the geopolitical situation which underlies recent price moves," the LME said.
Bloomberg reported that Chinese entrepreneur Xiang Guangda holds a large short position on the LME through his company, major nickel producer Tsingshan Holding Group Company.
While nickel could be halted from trading for the rest of the week, other base metals will continue to trade.
Aluminium dropped 7% overnight, while tin jumped 4.1% to a new record high. Palladium rose by a further 8.5% to a record high of $3147.50 an ounce. The precious metal is now up 65% since the start of 2022.
At midweek, gold futures gained 3% to $2056.70/oz, not far off the all-time high reached in 2020. Spot gold was trading at $2050/oz or A$2820/oz.
Oil rose another 3.6% to $123.70 per barrel, while uranium rose 3.3% to $53.20 per pound.