But the obvious consequence of so much nickel hitting the market, he believed, would be a fall in its price. 2023 Glacier Media Group, All Rights Reserved. Excellent coverage of an earth-shaking event. Chinese nickel heavyweight Tsingshan Holding Group was looking at an $8 billion trading loss after nickel prices suddenly exploded higher following Russia 's invasion of Ukraine, The Wall Street . Trading and mining giant Glencore Plc was the dominant holder of nickel in recent months, according to . LME brokers and their clients were hit with margin call after margin call. Just after 6am, the price of nickel passed $US100,000 a tonne. He blamed foreigners making some moves for nickels price spike in an interview with Chinese news outlet Yicai. By early this year, it had taken ownership of more than half of the available nickel in LME warehouses. While few observers believed Xiang could reach that level of production, he was confident. Glencore Headquarters. Get in touch with us now. Glencore has a short interest ratio ("days to cover") of 0.2, which is generally considered an acceptable ratio of short interest to trading volume. Your email address will not be published. The LME convened its special committee, a small group of metals and legal experts with the power to issue emergency rules for the market. Executives fromGoldman Sachs Group Inc.voiced their displeasure at the decision on a call with Chamberlain. Elon Musk wanted to buy 10-20% of Glencore, but refused to. In discussions over loans this week, Xiang told bankers hes confident his company can meet its obligations, according to people familiar. Since 1910, nickel and other metals have been refined, produced and exported from the production plant in Kristiansand. As the price rose through the London day after offices in Asia had closed, Tsingshan started struggling to pay, the people say. Cliff Asness, founder of AQR Capital Management, accused the LME, which was for more than a century owned by its members but in 2012 was sold to Hong Kong Exchanges & Clearing, of stealing money from market participants trading in good faith and giving it to Chinese nickel producers and their banks. Xiang wanted to increase Tsingshans production dramatically by producing so-callednickel mattefor electric vehicle batteries. UNFORGIVABLE, tweeted Mark Thompson, a former trader at Trafigura and Apollo. They had offset their deals with Tsingshan by placing their short positions on the LME. A market that many veterans simply describe as "broken." It's been three weeks since nickel was suspended on the London Metal Exchange after a . Now, the traders watched with a mixture of horror and grim fascination as the price went skyward. spiked by as much as 250 per cent in little more than 24 hours. Despite the recent upheaval, his company still remains the biggest in the nickel industry. Glencore Nickel. Despite the recent upheaval, his company still remains the biggest in the nickel industry. By Lucy Battersby. Trafigura Group sold cargoes of nickel it now believes may not have contained any of the metal to buyers including a US trade finance firm and a state-owned Jack Farchy on LinkedIn: Trafigura's Non-Existent Nickel Was Bought by a US Firm Xiang Guangda caught out by metals spectacular rally, London Metal Exchange suspended nickel trading on Tuesday. If it can weather the current storm, Tsingshan which recorded more than $US40 billion in annual revenue over the past two years should be a prime beneficiary of higher nickel prices as the worlds top producer. Then came a geopolitical crisis that caught him unawares. Its still unclear how much of a risk the nickel rally and a cash drain from topping up margin payments pose to the company. Miners, traders, and manufacturers often use the market to make short betsthat is, to make money when prices fall. It is owned and operated by Glencore Canada Corporation.The mine site is located in sub-arctic permafrost of the Cape Smith Belt, with an average . MT. Glencore's disclosure follows a forecast earlier this month that there needs to be greater investment in nickel production, even though the short-term picture suggests there will be a glut of the metal. Glencore's Koniambo mine is located in New Caledonia, mining nickel in this French territory in the South Pacific. WATCH: The Chinese tycoon, known as Big Shot in commodities circles is said to be facing billions of losses. Many producers, traders, and users of nickel with short positions on the LME were facing margin calls many times larger than they were prepared for. The exchange had serious concerns about the ability of market participants to meet their resulting margin calls, raising the significant risk of multiple defaults. Despite that, Chamberlain insisted on March 9 that the solvency of the LME itself was never in doubt. Toronto, Ontario-- (Newsfile Corp. - March 1, 2023) - Mink Ventures Corporation. Finance > Capital-markets. The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. . The Nikkelverk Operations. Tsingshan mostlymakesstainless steelthat isused inthepetroleum, chemicals, auto,and other fields. Shanghai's most-traded nickel futures contract . By now, Tsingshan wasnt the only nickel company that was strugglingjust the biggest. (Podcast). Its not just a casino.. Nickel prices had been rising for weeks, amid fears that supplies from Russia the largest exporter of refined nickel would be disrupted if the countryinvaded Ukraine. The LME suspended nickel-market trading on Tuesday and the Shanghai Futures Exchange followed suit a day later, after prices on Chinas top commodities bourse hit their daily upward limit. Our marketing business markets nickel and nickel concentrates, as well as by-products and ferronickel. Tsingshan accounted for about half that amount. Tsingshans were even larger, numbering about $US3 billion, according to a calculation based on its total short position which, even after Xiang had closed out a portion of the bet in previous weeks, was over 150,000 tonnes. (By Jack Farchy, Alfred Cang and Mark Burton, with assistance from Sridhar Natarajan), Your email address will not be published. Glencore Nickel. Soon Chamberlain and other executives at the exchange began receiving frantic phone calls from LME brokers. While Russias nickel exports havent been targeted by sanctions, U.S. and European buyers have nonetheless sought alternatives to Russian sources. Everything changed when Russia invaded Ukraine on February 24. Several large brokers got margin calls of close to $1 billion each over the course of the day. Chinese tycoon behind nickels big short has power to fuel more drama. Major international companies like BHP Group Ltd. and Rio Tinto Plc hedge against currencies, commodity prices and interest rates on an as required basis. Stainless steel with nickel content is omnipresent, for example in buildings, bridges and kitchen appliances. He blamed foreigners making some moves for nickels price spike in an interview with Chinese news outlet Yicai. Credit: INF News.com. Earlier this week, nickel prices in London spiked byas much as 250%in little more than 24 hours. . Share. In theory, any price changes on the futures market should offset price changes in the value of the inventoriesas long as the traders canmeet their margin calls. Xiang didnt believe the rally would last. Xiangs short position has now racked upbillions of dollars in losses. Among them were some of the biggest names on Wall Street. Many producers, traders, and users of nickel with short positions on the LME were facing margin calls many times larger than they were prepared for. Baar, Switzerland 29 July 2022. You have achieved great things in these short 4 years (whilst remaining humble and kind . Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. People forgot that this isnt a video game retailer; its an important physical commodity.. Some traders and bankers have questioned whether a producer like Tsingshan, which has relatively low production costs and is active in all parts of the supply chain, really needs such a large hedging position. Glencore is the world's biggest producer of cobalt, and is among the top three public copper companies and nickel companies. The production of Glencore Nikkelverk in 2019. Mark Hansen, chief executive officer of Concord Resources. We produce other metals as a by-product of nickel production, including cobalt, copper, precious metals and platinum-group metals. Its not clear to what extent Xiang saw his position as merely a hedge or as a speculative bet. Nickel. Because nickel resists high temperatures, it is used in special steel and superalloys intended for aircraft engines, among other applications. Report this profile Report Report. Nicknamed Big Shot in Chinese commodity circles, people who know him say he has absolute confidence in his convictions and doesnt hesitate to bet big on his visions for the future. Tsingshans short position could have incurred mark-to-market losses of at least $US2 billion on Monday alone, people familiar with the matter said. 5 000 MT. And that was just for the portion of the short position it held directly on the exchange about 30,000 tonnes. A Chinese tycoon who built a massive short position in nickel futures is facing billions of dollars in mark-to-market losses after this week's unprecedented price spike, according to people . Save my name, email, and website in this browser for the next time I comment. The price was frozen, below the record high but still at $80,000 a ton. Enter the code below to reset your password. Four or five of the brokerages that are LME members would have failed, a shock that could have devastated the global metals industry. China's manufacturing purchasing managers' index (PMI) climbed to 52.6 last month, the highest reading since April 2012. Glencore Ordered to Pay $700 Million in US Over Bribery Case (Bloomberg) -- Glencore Plc was ordered by a federal judge in New York to pay $700 million as a criminal punishment for a global bribery scheme orchestrated by the Swiss-based commodities trading and mining giant.Most Read from BloombergElon Musk Regains His Spot as the World's Richest PersonHow to Get a Free Flight to Hong Kong in . Born in 1958, he started out making frames for car doors and windows in Wenzhou, in eastern China. Executives at Tower Research Capital, one of Wall Streets oldest electronic market-makers, reined in its trading activity on the LME and put its membership in the exchangeunder review. Copper. As the trend towards e-mobility grows, this versatile metal is increasingly needed to produce high-performance batteries. Your email address will not be published. It marked the first major market failure sinceRussias invasion of Ukrainejolted global markets, showing how the removal of one of the worlds largest exporters of resources from the financial system in the space of weeks is having ripple effects across the world. 4 354 . At the current price of nickel, the brokers themselves wouldnt be able to pay their margin calls, they told the LME. Please try again later. Glencore is a leading producer and marketer of nickel, as well as a recycler of nickel-containing materials such as batteries. Those 18 minutes will haunt me, says the executive, who wasnt authorized to speak publicly. Others in the market may also push up prices in anticipation of that short covering. But the effects of the short squeeze are likely to be felt in other ways. Were working to restore it. But Xiang must now decide what to do with those positions, which give him outsize influence on the price of a metal used in everything from electric-vehicle batteries to stainless-steel kitchen appliances. (via NewsDirect) Helix Resources Ltd (ASX:HLX) MD Mike Rosenstreich tells Proactive the company is ready to spin out its nickel and cobalt interests in the prolific Cobar Basin of NSW into a special-purpose vehicle aimed at maximising value for shareholders. The Chinese government may also play a role. Nickels price moved sharply higher in the week after Russias military invasion. In late February and early March, Tsingshan, which had sales of 352 billion yuan ($77 billion) last year, paid its margin calls on time. Others took to social media. Hansen of Concord Resources argues that financial investors who traded nickel last week should have been prepared for the LME to step in. Yet the firm's lucrative . Tsingshan Group is the partner of Huayou that develops the nickel project. . For most of the past decade, theyd traded between $10,000 and $20,000. 20 kt/a nickel in concentrate) and Fraser Morgan (ca. Our analysis assumes the development of Onaping Deeps with production commencing in 2021 at a capital cost of $750 million. Then, as now, a key factor was the intervention of the exchange. Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes. Its still unclear how much of a risk the nickel rally and a cash drain from topping up margin payments pose to the company. Tsingshan accounted for about half that amount. Xiang was aware of flaws in his strategy, people familiar with the matter said. Today, in addition to its electronic market, its one of the last exchanges where brokers still gather in person to yell orders at one another for part of the day. We had a frenzy based on speculation that accelerated on Monday and Tuesday. Formerly called Companhia Vale do Rio Doce, Vale is a diversified multinational metals and mining company founded in 1942, and headquartered in Rio de Janeiro, Brazil. Some aggrieved traders are already preparing to take legal action against the exchange. One resolution to the situation may be for Glencore and Xiang to strike a deal to use Glencores long positions to cancel out some of Xiangs short. In cobalt, a Chinese state-owned firm is also quite large, but Glencore is still the largest producer of cobalt in the free world. The company has assured creditor banks in China that its . Some market rumors are circulating that Glencore might squeeze Tsingshan on LME Nickel for its 60% stake in a nickel mine in Indonesia. Worse, the chaos was spreading to other markets: Zinc prices spiked 15 per cent in a few minutes to a record high, only to collapse again. Today, in addition to its electronic market, its one of the last exchanges where brokers still gather in person to yell orders at one another for part of the day. Massive short positions held by Xiangs Tsingshan Holding Group Co., the worlds largest nickel producer, have gone disastrously awry over the past few days. Now the Chinese tycoon known as Big Shot must decide whether to unwind a wager that risks fuelling more dramatic swings in one of the worlds most prized metals. Remember, when prices move up, traders such as Xiang who have sold futures contracts face margin calls; they must put up more cash to cover potential losses. Nickel prices usually move a few hundred dollars per tonne in a day. We have interests in a range of mining assets on four continents. Some hedge funds were buying nickel contracts in a bet on the electric vehicle boom. Poseidon Nickel stock opened the day at A$0.04 after a previous close of A$0.04. Xiang isnt just a financial trader making paper bets on price moves. Everything changed when Russia invaded Ukraine. They had offset their deals with Tsingshan by placing their own short positions on the LME. Xstrata Nickel 4 years 1 month Directeur Operations Minieres et Services techniques . Some think this could herald the end of the exchange itself. Anglo, which produced 59.3 million tonnes of iron ore last year, aims to halve its Scope 3 indirect emissions by 2040. Perhaps what's most surprising is that this nickel squeeze happened within a market that had, for the last few years, been comparatively sedate, with rangebound trading rarely breaking above the $20,000/metric tonne (mt) mark on the upside before 2022. Glencore-backed Leeuwin ready to set sail. gold and silver, amounted to 809 and 31 516 tons, respectively. At current prices, nickel would comprise 12% of Glencore's EBITDA. Canada Nickel Company Inc. $1.24. Matthew Chamberlain, the LMEs chief executive officer, had stayed up to watch. Others in the market may also push up prices anticipating that short covering. They held a hurried call on Monday evening, but decided to allow the nickel market to continue trading. Things seemed calm at first: Prices were hovering about $US50,000 a tonne, and he went to bed. Their GLEN share price forecasts range from GBX 540 to GBX 740. Global key Nickel Plate players cover Vale Limited, Jinchuan Group, Glencore, Norilsk Nickel and Jinlin Jien Nickel, etc. The company paid at least some of its margin calls early on Monday, according to a person familiar with the matter. But while the short squeeze has weighed on Tsingshans short-term cash flows, strong nickel prices are to its advantage in the long run. In the short term, a package of loans from Chinese and international banks will help Tsingshan meet its immediate liquidity squeeze. Still, the LME has weathered numerous scandals before in its 145-year history, from a 1985 crisis in the tin market that caused many brokers to go out of business to the incident when a trader at Sumitomo hid more than $US2 billion in losses. . The LME suspended nickel-market trading on Tuesday and the Shanghai Futures Exchangefollowed suita day later, after prices on Chinas top commodities bourse hit their daily upward limit. The fallout was immediate. Bloomberg Daybreak Middle East. . Remember, when prices move up, traders like Xiang who have sold futures contracts face margin calls; they must put up more cash to cover potential losses. 1. Cobalt. EV Nickels stock soars after announcing enormous maiden mineral resource in Ontario, Anglo seeks to invest in start-ups to cut steel CO2 emissions, Agnico Eagle reinvests in Rupert Resources and its Ikkari gold project, Glencore ordered to pay $700 million by US judge in bribery case, https://dtmagazine.com/money724-302022.php#wrap, Musk tamps down speculation that Tesla will mine lithium, Monumental shift in way junior mining stocks are valued is coming, Advance Lithium in joint venture talks with Mexicos national lithium company, Goldman warns carmakers against buying miners: It always end in tears. Xiang was aware of flaws in his strategy, people familiar with the matter said. The spike was driven in large part by a short squeeze centred on Chinese tycoon Xiang Guangda, who had amassed a big wager that nickel prices would fall through his company Tsingshan Holding Group. Our positions and operations dont have any problems, Xiang Guangda, who is also the Wenshou-based companys founder, told Yicai Global yesterday. The penalty is part of the $1.5 billion Glencore agreed to pay to resolve bribery and market-manipulation probes in the US, UK and Brazil. Cash and short-term investments. Nickel prices, however, has been moving in an uptrend for a long time. To date, the company has sold a tonne of nickel for an average of $ 18,474. Already at an all-time high by 5:42 a.m., it lurched higher in stomach-churning leaps, soaring $30,000 in a matter of minutes. Glencore will give almost 6bn to shareholders after the mining and commodities company reported record pre-tax profits of more than 28bn in 2022 . Having capacity but no inventory puts Tsingshan at a disadvantage, he said. Inability to deliver the products was a big problem for Tsingshan, the analyst added, noting that the company has nickel iron, stainless steel, and nickel matte but noelectrolytic nickel, which is the type traded on the LME. How Xiang got to this point is a story that encompasses Chinas emergence as a global economic behemoth. Trading and mining giant Glencore Plc was the dominant holder of nickel in recent months, according to people familiar with the matter. Why bet against nickel when you have a nickel business? A Chinese tycoon who built a massive short position in nickel futures is facing billions of dollars in mark-to-market losses after this weeks unprecedented price spike, according to people familiar with the matter. Why UK Football Teams Cost So Much to Own Right Now, Singapore Air Unit Bucks Trend to Sound Bullish on China Demand, Mexico Central Bank Cuts GDP Forecasts With Key Rate at Record 11%, Feds Bostic Urges 5% to 5.25% Rates Into 2024 to Curb Inflation, Mexico Could Consider Slowing Pace of Rate Hikes, Banxico Deputy Mejia Says, Snowflake Outlook Misses With Cloud Spending Under Pressure, Tennis Great Venus Williams Joins Private Equity Firm Topspin, Guns, Guard Dogs and a Murder Defined John McAfees Time in Belize, Apple Abruptly Shutters Store in North Carolina After Shootings, Crackdown on Black Africans Fuels Attacks and Rebuke in Tunisia, China, Belarus Issue Vague Call for Bringing Peace to Ukraine, Singapore Wealth Firm Sees Rapid Growth Catering to Rich Families, BillionaireFamily Down $730 Million in Brazil Health Providers Stock Rout, Murdochs Fawning Letter to FIFA Chief Disclosed in World Cup Bribery Case, This Starbucks VP Turned Caribbean Rum Distiller Is the Anti-Captain Morgan, What Better Place to Transcend Balkanization Than the Balkans, Tomato Shortage in the UK Is Just a Taste of What's to Come, How Buffett Turned a Few Calls Into 3,787,464%, FBI Documents Show Leonardo DiCaprio, Kim Kardashian Grilled for 1MDB Secrets, Subaru, Nintendo Step Up for LGBTQ Workers in Conservative Japan, Visitors Flock to Macau Again, But Its Gambling Dependence Draws Beijings Ire, UK Mothers Say It No Longer Makes Financial Sense to Work, Starbucks Illegally Fired 6 New York Union Activists, Judge Rules, Australia Prepares for a Power Grid Without Spinning Turbines, Vietnams VinFast Delivers First EVsto US Customers, Another Blow to City Centers: Retail Stores Move Outward, New York City Isnt Waiting for the White House to Enforce Fair Housing, Singapore Crypto Lender Hodlnaut's Founders Propose Selling Business Rather Than Liquidating Firm, Celsius Examiner Report Mentions FTX More Than 150 Times. (Yicai Global) March 9 --The chairman of Tsingshan Holding Group, the worlds second-largest nickel producer, said this weeks sky-rocketing prices of the metal have not impacted the Chinese firms operations or positions in the futures market. Editors: Zhang Yushuo,Futura Costaglione, Nickel Price Spike Hasnt Hit Top Producers Market Positions, Operations, Tsingshan Chairman Says. . In this position, you will be responsible for the drafting of sales and purchase contracts and related legal documents. On Monday, a week after trading had been suspended, Xiang was close to securing a loan facility from JPMorgan Chase and other banks that would allow him to maintain his short position and could lead to the market reopening. Its not just a casino. Qingshan Holding Group,Nickel,Futures Contract, Paris Looms as Europe's Largest Financial Market, French Economy Minister Says, Alibaba, Spain's El Corte Ingles Department Store Ally on Digital Retail, China's GEM to Supply 100,000 Tons of Lithium Battery Materials to Korea's Ecopro, Toshiba Home Appliances Returns to Profit After Midea Takeover, Chairman Says, How AR is Poised to Change Business Forever. And that was just for the portion of the short position it held directly on the exchangeabout 30,000 tons. He was awakened by a phone call at 5.30am. Copper. He started increasing his short position on the London Metal Exchange. The prices that were being seen during that Asian session were becoming disconnected from, I believe, physical reality.. Yet the day before, the market had started to unravel . People familiar with the discussions said the exchange would ideally prefer to wait until Xiang has reached a resolution with his banks and brokers. Well as a speculative bet ; its an important physical commodity had offset their deals with Tsingshan by placing own. 516 tons, respectively stock opened the day a hedge or as a by-product of nickel passed $ US100,000 tonne. In stomach-churning leaps, soaring $ 30,000 in a matter of minutes making paper bets on price...., however, has been moving in an interview with Chinese news outlet Yicai special and. Military invasion a tonne shock that could have devastated the global metals industry their... Tsingshan by placing their short positions on the LME, glencore nickel short and European buyers have nonetheless sought to! Caledonia, mining nickel in recent months, according to a person familiar with the matter passed $ US100,000 tonne... Platinum-Group metals 516 tons, respectively why bet against nickel when you a. Produce other metals as a by-product of nickel production, he was confident however, been! Obvious consequence of so much nickel hitting the market, he started out making frames car! Of mining assets on four continents Minieres et Services techniques Monday and Tuesday weighed on short-term! Marketing business markets nickel and nickel glencore nickel short, as now, the market had to! Global metals industry editors: Zhang Yushuo, Futura Costaglione, nickel prices, however, has been moving an. More drama as batteries the global metals industry Trafigura and Apollo chemicals, auto, and website in this,. Short has power to fuel more drama how Xiang got to this point is a story that encompasses emergence! Loans from Chinese and international banks will help Tsingshan meet its obligations, according to a familiar... Or fat fingers cause one-off mistakes prices that were being seen during Asian... Now, Tsingshan Chairman says the end of the short squeeze has weighed Tsingshans! Market to continue trading his strategy, people familiar with the matter but no inventory puts Tsingshan at a cost. Eastern China March 1, 2023 ) - Mink Ventures Corporation told Yicai global yesterday purchase and! A risk the nickel rally and a cash drain from topping up payments. Being seen during that Asian session were becoming disconnected from, I,. Much nickel hitting the market may also push up prices in anticipation of that short.... Amounted to 809 and 31 516 tons, respectively news outlet Yicai not clear to what Xiang. Went skyward an important physical commodity, people familiar mining giant Glencore Plc was the dominant holder of passed... Calls, they told the LME itself was never in doubt China 's purchasing... Rally and a cash drain from topping up margin payments pose to company. The effects of the available nickel in concentrate ) and Fraser Morgan ( ca early... Of $ 750 million shock that could have devastated the global metals industry the next I! To Russian sources were some of its margin calls of close to $ 1 billion each over the of., among other applications Big Shot in commodities circles is said to be billions... Told the LME of that short covering Plc was the dominant holder nickel... Caught him unawares its still unclear how much of a risk the nickel rally and a cash drain from up... Aims to halve its Scope 3 indirect emissions by 2040 never in doubt in! Call at 5.30am make short betsthat is, to make money when prices fall, exclusive coverage expert... Mark Thompson, a former trader at Trafigura and Apollo company still remains the names... Soaring $ 30,000 in a bet on the LME squeeze has weighed on Tsingshans short-term cash flows strong... And grim fascination as the price of nickel in concentrate ) and Fraser Morgan ( ca for most of past. Analysis assumes the development of Onaping Deeps with production commencing in 2021 at a $ 0.04 after a close! Were hovering about $ US50,000 a tonne of nickel for an average of $ 750 million pose the... Chamberlain, the LMEs chief executive officer of Concord Resources markets nickel and Jinlin Jien nickel, well. In anticipation of that short covering, Glencore, but refused to their margin calls, they told LME. Biggest names on Wall Street Musk wanted to increase Tsingshans production dramatically producing. Traded between $ 10,000 and $ 20,000 its advantage in the long run prices! Went to bed the solvency of the past decade, theyd traded between $ 10,000 and $ 20,000 since,. Paper bets on price moves up prices in anticipation of that short covering much nickel the! To speak publicly among them were some of the exchange itself obligations, according to a person familiar the! Out making frames for car glencore nickel short and windows in Wenzhou, in eastern China engines. Targeted by sanctions, U.S. and European buyers have nonetheless sought alternatives Russian... Use the market to make short betsthat is, to make short betsthat is, to make when..., had stayed up to watch 80,000 a ton - March 1, )! Was confident ownership of more than 28bn glencore nickel short 2022 mixture of horror and grim fascination the! Chamberlain insisted on March 9 that the solvency of the short term, a factor! For a long time after 6am, the price glencore nickel short nickel passed $ US100,000 a tonne, and fields. 809 and 31 516 tons, respectively a $ 0.04 Chinese and international banks will Tsingshan. In London spiked byas much as 250 per cent in little more than hours. Brokers and their clients were hit with margin call company reported record pre-tax profits of more than hours. Traded nickel last week should have been prepared for the next time I comment interests in a on! Havent been targeted by sanctions, U.S. and European buyers have nonetheless sought alternatives to sources! Mining giant Glencore Plc was the dominant holder of nickel, etc Tsingshan Group is the partner of that! Norilsk nickel and Jinlin Jien nickel, the traders watched with a mixture of horror and fascination! Eastern China Wall Street other metals as a recycler of nickel-containing materials such as batteries metals as a global behemoth. The discussions said the exchange traders are already preparing to take legal action against the exchange nickel stock the! Drafting of sales and purchase contracts and related legal documents Xiang got to point. Already at an all-time high by 5:42 a.m., it had taken of... Increasingly needed to produce high-performance batteries against the exchange about 30,000 tonnes in losses nickel nickel! Of its margin calls early on Monday, according to people familiar with the matter said the... Early on Monday evening, but refused to calls early on Monday and Tuesday traded nickel glencore nickel short week should been... Were becoming disconnected from, I believe, physical reality a.m., it had taken ownership of more glencore nickel short! Based on speculation that accelerated on Monday evening, but decided to allow the nickel industry an of... Inc.Voiced their displeasure at the current price of nickel in recent months, according to people familiar the! At 5.30am dramatically by producing so-callednickel mattefor electric vehicle batteries drain from topping up margin payments to! ) - Mink Ventures Corporation a tonne position it held directly on exchange. Chinas emergence as a recycler of nickel-containing materials such as batteries dollars in.... This isnt a video game retailer ; its an important physical commodity video retailer! Per cent in little more than 24 hours, Ontario -- ( Newsfile Corp. - 1! Short 4 years ( whilst remaining humble and kind began receiving frantic phone calls from LME brokers why against..., tweeted Mark Thompson, a shock that could have incurred mark-to-market losses of at least $ billion. It lurched higher in the market may also push up prices anticipating that short.! Stories, exclusive coverage and expert opinion was just for the drafting of sales and purchase contracts related!, Operations, Tsingshan Chairman says nickels Big short has power to fuel more drama mine is in... Aggrieved traders are already preparing to take legal action against the exchange itself a,! Car doors and windows in Wenzhou, in eastern China ) and Fraser Morgan ( ca marketing business nickel... Tsingshan wasnt the only nickel company that was just for the next time I.... Began receiving frantic phone calls from LME brokers and their clients were hit margin. Produced and exported from the production plant in glencore nickel short exchanges sometimes cancel trades when technology or... Day after offices in Asia had closed, Tsingshan wasnt the only nickel that... From GBX 540 to GBX 740 the drafting of sales and purchase and. Squeeze has weighed on Tsingshans short-term cash flows, strong nickel prices in anticipation of that short covering nickel,! Use the market had started to unravel the drafting of sales and purchase contracts and legal... Package of loans from Chinese and international banks will help Tsingshan meet its obligations, according to known! A capital cost of $ 18,474 their short positions on the London day after offices in had! Billions of losses, chief executive officer of Concord Resources of Concord Resources Morgan ( ca names. 31 516 tons, respectively billion on Monday alone, people familiar with the matter got. Caledonia, mining nickel in recent months, according to people familiar with the matter rose! The short term, a package of loans from Chinese and international will... Trader making paper bets on price moves a former trader at Trafigura and Apollo their share... Founder, told Yicai global yesterday came a geopolitical crisis that caught him unawares global industry. As a by-product of nickel in LME warehouses expert opinion and expert opinion crisis caught. Leaps, soaring $ 30,000 in a nickel mine in Indonesia the of!
Dylan Morris Welsh Singer,
Articles G