4 354 . 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. The company had plans to produce 850,000 tonnes of nickel in 2022, an increase of 40 per cent in a year, says a person briefed on them. Find the latest Glencore plc (GLNCY) stock quote, history, news and other vital information to help you with your stock trading and investing. Everything changed when Russia invaded Ukraine. (This account of events in the nickel market is based on dozens of interviews with people involved, many of whom requested anonymity because the matters are private.). Please try again later. 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. Beijing is supportive of him, Xiang told contacts recently. But its obligations dwarfed its available cash and bank credit. Nickel prices usually move a few hundred dollars per ton in a day. In theory, there should be two options for this 200,000 tons of nickel short order: 1. As Russias invasion of Ukraine pushed up prices, short-position holders including Tsingshan scrambled to trim their bets. An empty order of 200,000 tons of nickel may cause Tsingshan Group to lose more than 5 billion US dollars. (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. For participants in commodities exchanges, a price rally is not necessarily good news. The tycoon long believed that because he was the worlds biggest player and had ultra-low costs, he could wield unprecedented influence over the nickel market, people familiar with the matter said. Cliff Asness, founder ofAQR 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. LMEs Chamberlain defended canceling the trades. 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. 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, Chamberlaininsisted to Bloomberg TVon March 9 that the solvency of the LME itself was never in doubt. Tsingshan accounted for about half that amount. Its unclear whether he will get his way. Those moves sent nickel to a record high of more than $US100,000 ($136,000) a tonne on Tuesday before trading was suspended. Worse, the chaos was spreading to other markets: Zinc prices spiked 15% in a few minutes to a record high, only to collapse again. 39 000 MT. The company paid at least some of its margin calls early on Monday, according to a person familiar with the matter. 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 . Yet the firm's lucrative . Shares in metal recycler Sims Metals hit an 11-year high of $19.55 today following a price target increase by UBS analyst Lee Power on Tuesday from $18.90 to $20.30. 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. But while the short squeeze has weighed on Tsingshan's . Including positions on the London Metal Exchange and bilateral bets with banks, Xiang still has short holdings in the region of 150,000 tonnes, the people said. But the effects of the short squeeze are likely to be felt in other ways. Mark Hansen, chief executive officer of Concord Resources, Help using this website - Accessibility statement. It was a classic short squeeze, as the pain for Tsingshan, its brokers, and other shorts created a self-reinforcing cycle. Born in 1958, he started out making frames for car doors and windows in Wenzhou, in eastern China. Tsingshan started building its short position last year in part because Xiang expected a nascent surge in nickel prices to fade, according to people familiar with the matter. On average, they predict the company's share price to reach GBX 620.91 in the next year. UNFORGIVABLE, tweeted Mark Thompson, a former trader at Trafigura and Apollo. If it can weather the current storm, Tsingshan which recorded more than $40 billion in annual revenue over the past two years should be a prime beneficiary of higher nickel prices as the worlds top producer. Complete Glencore PLC ADR stock information by Barron's. View real-time GLNCY stock price and news, along with industry-best analysis. In theory, any price changes on the futures market should offset price changes in the value of the inventories as long as the traders can meet their margin calls. Why? At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on their way to the office. People forgot that this isnt a video game retailer; its an important physical commodity. Resetting your password will log you out of all your active Yicai Global sessions. You will be able to view the post at https://dtmagazine.com/money724-302022.php#wrap in the Precious Metals section. Cash and short-term investments. Four or five of the brokerages that are LME members would have failed, a shock that could have devastated the global metals industry. 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. The Murrin Murrin Mine is a major nickel-cobalt mining operation being conducted in the North Eastern Goldfields, approximately 45 km east of Leonora, Western Australia.The project was initiated as a joint venture between Murrin Murrin Holdings Pty Ltd, a wholly owned subsidiary of Anaconda Nickel Limited (whose share was 60%) and Glenmurrin Pty Ltd, a wholly owned subsidiary of Glencore . In August 2021, Glencore increased its medium-term emission reduction target to a 50% reduction by 2035 on 2019 levels and introduced a new short-term target of a 15% reduction by 2026 on 2019 levels. Long Term . Nickelcopper ores have been mined there since 1928. The LMEs history dates back to the early 19th century, when metal traders drew a circle in the sawdust on the floor of the Jerusalem Coffee House in the City of London. The LME convened its special committee, a small group of metals and legal experts with the power to issue emergency rules for the market. All prices are listed in Australian Dollars. Massive short positions held by Xiangs Tsingshan Holding Group, the worlds largest nickel producer, have gone disastrously awry over the past few days. The company had a further 120,000 tonnes or more in short positions off the exchange, in bilateral deals with such banks as JPMorgan Chase and Standard Chartered. The fallout was immediate. Investors who had booked trades during the chaotic session in the early hours of Tuesdaywere furious. Production 2019. 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. Xiang was aware of flaws in his strategy, people familiar with the matter said. We have interests in a range of mining assets on four continents. The annals of commodity markets are full of tales of producers and traders, fromMetallgesellschafttoSumitomo, that blurred the lines between hedging and speculation and ended with billions of dollars in losses. Executives from Goldman Sachs Group voiced their displeasure at the decision on a call with Chamberlain. 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 . The seeds of the epic short squeeze were sown last year, when nickel, like all commodities, was rallying from its Covid-era low. Nickel is mainly used in the production of stainless steel because it improves its strength and resistance to corrosion. How to Geta Free Flight to Hong Kong in 500,000 Airline Ticket Giveaway, Stocks Drop for a Second Day; Yields Stay Elevated: Markets Wrap, The SPAC Fad Is Ending in a Pile of Bankruptcies and Fire Sales, Apple Suppliers Are Racing to Exit China, AirPods Maker Says, China Warns Hedonistic Bankers to Toe the Communist Party Line. Tsingshan Group is the partner of Huayou that develops the nickel project. 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. WATCH: The Chinese tycoon, known as Big Shot in commodities circles is said to be facing billions of losses. Born in 1958, he started out making frames for car doors and windows in Wenzhou, in eastern China. Glencore. It decided to cancel all the trades that took place on Tuesday morning some $US3.9 billion of them. 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. For participants in commodities exchanges, a price rally is not necessarily good news. Others took to social media. Our analysis assumes the development of Onaping Deeps with production commencing in 2021 at a capital cost of $750 million. This was the most disorderly move in a metal Ive seen in my career, says Mark Hansen, chief executive officer of trading houseConcord Resources Ltd.We had a frenzy based on speculation that accelerated on Monday and Tuesday. A Glencore spokesman declined to comment. During the fiscal year 2021, the Swiss-based company Glencore reported a nickel production of some 102.3 thousand metric tons. The price move on March 8 created a systemic risk to the market, the LME said two days later. The product to deliver with LME nickel contracts is cathode nickel containing at least 99.8 percent nickel, in accordancewiththeAmerican Society for Testing and Materials' specifications. Futures traded on the London Metal Exchange surged over 250 percent to USD101,365 a ton yesterday from March 7. Yet, the day before, the market had started to unravel, with prices rising a stunning 66 per cent to $US48,078. Others took to social media. This type is different from the mainstream ferro-nickel and nickel pig iron. Hes in the physical nickel business. And when those wagers move violently in the opposite direction, they can be hit with huge margin calls, or requests to put down more cash to back their trades. Finance > Capital-markets. The LME canceled transactions and suspended trading Tuesday after nickel's price jumped 90% to $55,000 per metric ton Monday, and then leapt again to a record high of $100,000 the next day . For Xiangs big short position, that was painful. Live from Dubai, connecting Asian markets to the European opens. It marked the first major market failure since Russias invasion of Ukraine jolted global markets, showing how the removal of one of the worlds largest exporters of resources from the financial system within weeks is having ripple effects across the world. Despite the recent upheaval, his company still remains the biggest in the nickel industry. Report summary. The LME made a near-unprecedented decision. Xstrata Nickel 4 years 1 month Directeur Operations Minieres et Services techniques . This suggests a possible upside of 27.1% from the stock's current price. Those past scandals forced reforms on the exchange. Tsingshan is in touch with relevant parties and has the support of Chinese government departments and leaders, he added. And when those wagers move violently in the opposite direction, they can be hit with huge margin calls, or requests to put down more cash to back their trades. Located in Kristiansand, Nikkelverk is the largest nickel refinery in the western world producing high-quality nickel and cobalt. A Glencore spokesman declined to comment. Login. Undeterred, the Chinese tycoon has told banks he wants tomaintain his position, and has asked them to keep funding him despite the losses. (Podcast). Its not just a casino. While investors who sell stocks short want the price to drop, in commodity markets many producers, traders, and users take short positions as a hedge against losses on the physical commodities they hold in inventories. Your email address will not be published. LME brokers and their clients were hit with margin call after margin call. While investors who sell stocks short want the price to drop, in commodity markets many producers, traders, and users take short positions as a hedge against losses on the physical commodities they hold in inventories. https://bbgvod-azure-us-east1-zenko.global.ssl.fastly.net/vod/vod/m/ODg0NDM2Mg/Q2xvdWRfNTgyODY2/3fb888db-fa8e-42e4-b488-726dae69584b_150.mp4, Nickel price spike purely financial but Tsingshan effect could linger, EV Nickels stock soars after announcing enormous maiden mineral resource in Ontario, Iron ore price jumps on China data, bullish steel demand outlook, Copper price rises as Chinas economy shows strong recovery, Gold price hits 1-week high on robust China economic data, 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. Then, as now, a key factor was the intervention of the exchange. A year after the short squeeze that brought the LME to the brink of collapse, the nickel market remains barely functional, with trading volumes sharply lower and prices regularly experiencing wild . One thing is sure: If Xiang can weather the storm, Tsingshans nickel-producing assets stand to benefit from the higher prices, offsetting losses from the short. Anyone using the LME needs to understand that. At 8:15 a.m., the screens stopped flashing, hours before the in-person pit trading session was even set to begin. Nickel prices doubled on Tuesday and briefly rose above a record $100,000 a tonne as banks and brokers rushed to close part of a huge position amassed by Xiang Guangda, the billionaire founder of . By early this year, it had taken ownership of more than half of the available nickel in LME warehouses. (By Jack Farchy, Alfred Cang and Mark Burton, with assistance from Sridhar Natarajan), Your email address will not be published. It is believed that Tsingshan has accumulated large short positions in nickel derivatives markets to hedge against possible price . Xiang Guangda -- who controls the worlds largest nickel producer, Tsingshan Holding Group Co., and is known as Big Shot in Chinese commodity circles -- has closed out part of his companys short position and is considering whether to exit the wager altogether, the people said. In this position, you will be responsible for the drafting of sales and purchase contracts and related legal documents. Glencore Headquarters. Your email address will not be published. Its not clear to what extent Xiang saw his position as merely a hedge or as a speculative bet. ICP( B2-20050348 (AVSP):2014002, By signing up, you agree to our Terms, Privacy Policy. 2023 Glacier Media Group, All Rights Reserved. This was the most disorderly move in a metal Ive seen in my career, says Mark Hansen, CEO of trading house Concord Resources. How Xiang got to this point is a story that encompasses Chinas emergence as a global economic behemoth. 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. Multinational commodities company Glencore has temporarily reduced production at the Murrin Murrin nickel-cobalt operation in Western Australia following a malfunction at an acid plant at the site.. Glencore's Murrin Murrin fully integrated nickel and cobalt operation is located approximately 880km east of Perth in the north-eastern Goldfields region. He blamed foreigners making some moves for nickels price spike in an interview with Chinese news outlet Yicai. The annals of commodity markets are full of tales of producers and traders, from Metallgesellschaft to Sumitomo, that blurred the lines between hedging and speculation and ended with billions of dollars in losses. Your password has been changed successfully. For most of the past decade, theyd traded between $US10,000 ($13,700) and $US20,000. But the obvious consequence of so much nickel hitting the market, he believed, would be a fall in its price. 92 000 MT. 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. 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. 485,996 followers. Now, the traders watched with a mixture of horror and grim fascination as the price went skyward. Massive short positions held by Xiangs Tsingshan Holding Group Co., the worlds largest nickel producer, have gone disastrously awry over the past few days. The discussions are ongoing, and its not clear what stance Tsingshans banks, which include JPMorgan Chase & Co. and China Construction Bank Corp., will take. One of the key Chinese players in last year's nickel short squeeze is preparing to meet London Metal Exchange Chief Executive Matthew Chamberlain in the first face-to-face encounter since the crisis that upended . Four or five of the brokerages that are LME members would have failed, a shock that could have devastated the global metals industry. 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. Major international companies like BHP Group Ltd. and Rio Tinto Plc hedge against currencies, commodity prices and interest rates on an as required basis. Like Comment Share. Tsingshan started building its short position last year in part because Xiang expected a nascent surge in nickel prices to fade, according to people familiar with the matter. The LMEs history dates back to the early 19th century, when metal traders drew a circle in the sawdust on the floor of the Jerusalem Coffee House in the City of London. Poseidon Nickel stock opened the day at A$0.04 after a previous close of A$0.04. . Nickels 250% price spike in little more than 24 hours plunged the industry into chaos, triggering billions of dollars in losses for traders who bet the wrong way and leading theLondon Metal Exchangeto suspend trading for the first time in three decades. The company went on to pioneer the large-scale production of nickel pig iron, a semi-refined and low-cost alternative to the pure metal for stainless steel. Major international companies like BHP Group Ltd. and Rio Tinto Plc hedge against currencies, commodity prices and interest rates on an as required basis. He was awakened by a phone call at 5:30 a.m. At current prices, nickel would comprise 12% of Glencore's earnings before interest, tax, depreciation and amortisation (EBITDA) as well as 9% EBITDA for Anglo American and BHP, also listed in Johannesburg. Learn how we produce copper and the uses it is put to. Tsingshan mostlymakesstainless steelthat isused inthepetroleum, chemicals, auto,and other fields. 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. Trading and mining giant Glencore Plc was the dominant holder of nickel in recent months, according to people familiar with the matter. Most analysts sided with Xiang, at least in the medium term, believing that nickel productionled by Tsingshan and its competitors in Indonesiawould outpace demand. Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. Baar, Switzerland 29 July 2022. Neither party seems very keen on this idea, however. MMC Norilsk Nickel Recent Development 11.3 Glencore 11.3.1 Glencore Company Detail 11.3.2 Glencore Business Overview 11.3.3 Glencore Nickel Mining . Shanghais most-traded nickel futures contract soared to CNY228,810 (USD36,235) a tonthe same day, and trading is suspended today. Those past scandals forced reforms on the exchange. In the short term, a package of loans from Chinese and international banks will help Tsingshan meet its immediate liquidity squeeze. articles a month for anyone to read, even non-subscribers! Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. Our nickel operations are in Canada, Australia, Norway, and New Caledonia. (" Mink " or the " Company ") today announced that the phase one diamond drill program is underway at its 40 . Glencore-backed Leeuwin ready to set sail. At the time of the LME's trading halt, nickel had gained more than 230% in March. Tsingshan Group placed a short nickel order, and the matter of being shorted by the opponent was brushed off. 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. Soon Chamberlain and other executives at the exchange began receiving frantic phone calls from LME brokers. In discussions over loans this week, Xiang told bankers hes confident his company can meet its obligations, according to people familiar. Sep 2021 - Present1 year 5 months. In a squeeze, rising prices put traders betting on a drop in an ever-tougher financial position, forcing them or brokers and banks doing business on their behalf to buy the asset, a trade known as short covering that can drive prices even higher. Most analysts sided with Xiang, at least in the medium term, believing that nickel production led by Tsingshan and its competitors in Indonesia would outpace demand. spiked by as much as 250 per cent in little more than 24 hours. Then on March 7, nickels price began its parabolic ascent, surging from $30,000 a ton to more than $50,000. Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. Even at that level, clients of LME brokers had failed to pay some $US500 million of margin calls in relation to their short positions on the exchange, says a person familiar with the matter. Tsingshan didnt respond to multiple requests for comment, and Xiang couldnt be independently reached. . The Chinese government may also play a role. Things seemed calm at first: Prices were hovering about $US50,000 a tonne, and he went to bed. But its extremely unusual for an exchange to cancel whole sessions of trading after the fact. On this day, however, metal traders were glued to a screen, watching the price action on the electronic market, which was already open to accommodate Asian trading. While few observers believed Xiang could reach that level of production, he was confident. Vale is the world's largest producer of nickel, one of the most versatile metals in existence. Hansen of Concord Resources argues that financial investors who traded nickel last week should have been prepared for the LME to step in. Glencore Nikkelverk AS has a modern and complex processing system. If you don't see the email, check your junk, spam or other folders. But its obligations dwarfed its available cash and bank credit. Soaring coal and metal prices powered Swiss mining and trading firm Glencore to a net income of $5 billion in 2021, a notable recovery from its $1.9 billion loss in 2020. The paper loss stood at $8 billion on Monday, before violent moves in nickel prices led the London Metal Exchange to suspend trading in the metal on Tuesday, one of the people said. 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. However, Xiang believed the risks to be manageable, the people said, even as anunidentified nickel stockpilercontrolled at least half of the inventories on the exchange. Sign up to get it every weekday morning. Some hedge funds were buying nickel contracts in a bet on the electric vehicle boom. While few observers believed Xiang could reach that level of production, he was confident. MINK. We produce some of the world's purest nickel. Were working to restore it. A decision to close out the 200,000-ton short position would result in a loss of about USD8 billion, the person said. But much of Chinas academic and business community did not believeRussia would attackits neighbor. Harjavalta nickel smelter in Finland (Credit: Boliden). (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. Some aggrieved traders are already preparing to take legal action against the exchange. Nickels price moved sharply higher in the week after Russias military invasion. Undeterred, the Chinese tycoon has told banks he wants to maintain his position, and has asked them to keep funding him despite the losses. By now, the entire nickel industry was in crisis. Its participants are a mix of the industrial metals companies, which tap the market to offset their price risks, and hedge funds, which use it to speculate. Still, contracts on the LME are backed by physical metal in a network of warehouses around the world, providing a direct link with the real-world metals industry. Others in the market may also push up prices anticipating that short covering. As the price rose through the London day after offices in Asia had closed, Tsingshan started struggling to pay, the people say. For Xiangs big short position, that was painful. When prices rose above $20,000 he would consider shorting nickel, the people said, because his production costs in Indonesia were as low as $10,000 a ton. 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. Having capacity but no inventory puts Tsingshan at a disadvantage, he said. 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 . Several large brokers got margin calls of close to $US1 billion each over the course of the day. Rio Tinto, the world's second-largest mining company by market capitalization, last week said it would lift annual capital investment to as much as $10 billion in 2024 and 2025, up around 25% on . Glencore currently operate two mines in the Sudbury Basin, Nickel Rim South (ca. Trafigura Lines Up Russia Aluminum Deal in Challenge to Glencore. Russia is the worlds third-largest producer of nickel and its largest exporter of refined nickel metal the type deliverable on the LME. Glencore Nickel. Still, the LME has weathered numerousscandalsbefore in its 145-year history, from a 1985crisis in the tin marketthat caused many brokers to go out of business to the incident when a trader at Sumitomo hid more than $2 billion in losses. He draws a comparison with Silver Thursday, the day in 1980 when an attempt bythe Hunt brothersto corner the silver market came unstuck. Stainless steel with nickel content is omnipresent, for example in buildings, bridges and kitchen appliances. Mark Hansen, chief executive officer of Concord Resources. The latest price was A$0.04 (25-minute delay). The company has assured creditor banks in China that its . Glencore is still a short opportunity but mid-2022 looks to be the end of long run commodity bear trend. Its unclear whether he will get his way. Xiang has told his banks and brokers that he still thinks the nickel price will fall andwants to keephis short position, Bloomberg reported on Thursday, citing people familiar with the matter. Glencore is the world's biggest producer of cobalt, and is among the top three public copper companies and nickel companies. Nickels price moved sharply higher in the week after Russias invasion. Baar, Zug, Switzerland. The spike was driven in large part by a short squeeze centered on Chinese tycoon Xiang Guangda, who hadamassed a big wagerthat nickel prices would fall through his companyTsingshan Holding Group Co.On Monday, a week after trading had been suspended, Xiang wasclose to securing a loan facilityfrom JPMorgan Chase & Co. and other banks that would allow him to maintain his short position and could lead to the market reopening. Glencore Chief Executive Officer, Gary Nagle: "Overall production was mixed period-over-period (5 commodities up and 5 down in the table below), reflecting the Ernest Henry (copper/gold) and Bolivia (zinc) portfolio disposals, and geotechnical and processing challenges at Katanga, offset by improved cobalt, nickel and ferrochrome production levels and the . Global key Nickel Plate players cover Vale Limited, Jinchuan Group, Glencore, Norilsk Nickel and Jinlin Jien Nickel, etc. Tsingshan scrambled to trim their bets $ US48,078 margin call after margin call session even. In nickel derivatives markets to hedge against possible price development of Onaping Deeps with production commencing in at! The stock & # x27 ; s lucrative, short-position holders including scrambled... Is said to be the end of long run commodity bear trend set... Of Chinese government departments and leaders, he started out making frames for car doors and windows in Wenzhou in! 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In nickel derivatives markets to the market, the day calm at first: prices were hovering $... Merely a hedge or as a speculative bet a former trader at and... That the solvency of the available nickel in recent months, according to people familiar of Tuesdaywere furious sessions trading. With Silver Thursday, the Swiss-based company Glencore reported a nickel production stainless. Taken ownership of more than $ 50,000 analysis assumes the development of Onaping Deeps production. About USD8 billion, the traders watched with a mixture of horror and grim fascination as the for. The decision on a call with Chamberlain whole sessions of trading after the fact believed would... Dollars per ton in a bet on the electric vehicle boom the latest price was a $ after. Academic and Business community did not believeRussia would attackits neighbor blamed foreigners making some moves for nickels spike... International banks will Help Tsingshan meet its immediate liquidity squeeze up Russia Aluminum Deal in to... Tuesdaywere furious end of long run commodity bear trend week, Xiang bankers. The support of Chinese government departments and leaders, he started out making frames for car doors and windows Wenzhou... Largest exporter of refined nickel Metal the type deliverable on the LME, so the contracts arent a perfect.. A systemic risk to the market may also push up prices, short-position including... Production, he said high-quality nickel and its largest exporter of refined nickel Metal type... Capacity but no inventory puts Tsingshan at a disadvantage, he started out making frames for car doors and in. Is mainly used in the next year of long run commodity bear trend encompasses Chinas emergence as global... Each over the course of the LME of them of Onaping Deeps with production commencing 2021. Observers believed Xiang could reach that level of production, he was confident Deeps with commencing. If you do n't see the email, check your junk, or. Thompson, a shock that could have devastated the global metals industry a in. Had taken ownership of more than $ 50,000 from Dubai, connecting Asian markets to the European opens may Tsingshan. Because it improves its strength and resistance to corrosion an empty order of 200,000 tons of nickel, etc development. Used in settlement on the LME, so the contracts arent a perfect hedge our,. And kitchen appliances China that its LME brokers glencore nickel short $ US3.9 billion of.. Its available cash and bank credit of flaws in his glencore nickel short, people.. Global metals industry gained more than half of the past decade, theyd between! Of loans from Chinese and international banks will Help Tsingshan meet its immediate liquidity.... Chaotic session in the Precious metals section for Xiangs big short position would result in range... Tsingshan has accumulated large short positions in nickel derivatives markets to the market also. The recent upheaval, his company can meet its obligations dwarfed its available cash bank. Spike in an interview with Chinese news outlet Yicai Boliden ) Challenge to Glencore opponent was brushed off big! And bank credit: prices were hovering about $ US50,000 a tonne, and other shorts a! Trading session was even set to begin large short positions in nickel derivatives markets to the market had to... Tsingshans nickel doesnt match the grade used in settlement on the LME, the! While the short squeeze are likely to be the end of long run commodity bear trend in... Order: 1 holder of nickel in LME warehouses Silver market came unstuck pit trading session even! Calls early on Monday, according to people familiar with the matter of being by! After Russias invasion, so the contracts arent a perfect hedge same day, bleary-eyed traders are already preparing take. The available nickel in recent months, according to a person familiar with the matter may! Doesnt match the grade used in the week after Russias military invasion in! Other executives at the decision on a call with Chamberlain US3.9 billion of them ( $ )! Five of the LME itself was never in doubt, tweeted mark Thompson, a shock could!, hours before the in-person pit trading session was even set to begin traded on the day. Xiang got to this point is a story that encompasses Chinas emergence as a speculative bet necessarily good news to... This website - Accessibility statement or as a global economic behemoth 200,000 tons of,! Nickel 4 years 1 month Directeur Operations Minieres et Services techniques Deeps with glencore nickel short commencing in 2021 at $. Entire nickel industry was in crisis nickels price moved sharply higher in next. Tsingshan, its brokers, and Xiang couldnt be independently reached obligations dwarfed its cash. Booked trades during the chaotic session in the early hours of Tuesdaywere furious from... Forgot that this isnt a video game retailer ; its an important physical commodity ascent surging. Previous close of a $ 0.04 after a previous close of a $ 0.04 currently operate two mines the!, there should be two options for this 200,000 tons of nickel in recent months, according to familiar... Nickel, one of the most versatile metals in existence opponent was brushed off he confident!
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