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 . 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. Some aggrieved traders are already preparing to take legal action against the exchange. 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. Sudbury Integrated Nickel Operations are located in the Sudbury basin, northern Ontario, Canada. (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.). Now, the traders watched with a mixture of horror and grim fascination as the price went vertical. While few observers believed Xiang could reach that level of production, he was confident. Once its industrial complex reaches peak p. Save my name, email, and website in this browser for the next time I comment. Glencore is still a short opportunity but mid-2022 looks to be the end of long run commodity bear trend. Xiang isnt just a financial trader making paper bets on price moves. The giant commodity traderGlencore Plcalso had a position on the LME that would benefit from rising prices. 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. Some market rumors are circulating that Glencore might squeeze Tsingshan on LME Nickel for its 60% stake in a nickel mine in Indonesia. 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 . Tsingshan accounted for about half that amount. How Xiang got to this point is a story that encompasses Chinas emergence as a global economic behemoth. Some hedge funds were buying nickel contracts in a bet on the electric vehicle boom. The company had plans to produce 850,000 tons of nickel in 2022, an increase of 40% in a year, according to a person briefed on them. He draws a comparison with Silver Thursday, the day in 1980 when an attempt by the Hunt brothers to corner the silver market came unstuck. Glencore's original trading business is still a powerhouse and is . Glencore plc was newly . 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. 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. Its still unclear how much of a risk the nickel rally and a cash drain from topping up margin payments pose to the company. For the LME to cancel nickel trades between willing buyers and sellers is unforgiveable. That put Tsingshans banks and brokers, which includeJPMorgan Chase,BNP Paribas, andStandard Chartered,in a bind. Several large brokers got margin calls of close to $US1 billion each over the course 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 . . Glencore Headquarters. Soon Chamberlain and other executives at the exchange began receiving frantic phone calls from LME brokers. In late February and early March, Tsingshan, which had sales of 352 billion yuan ($77 billion) last year, paid its margin calls on time. Xiang isnt just a financial trader making paper bets on price moves. 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. But while the short squeeze has weighed on Tsingshan's . Like Comment Share. He was awakened by a phone call at 5:30 a.m. Tsingshans short position could have incurred mark-to-market losses of at least $2 billion on Monday alone, people familiar with the matter said. Neither party seems very keen on this idea, however. 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. You will be able to view the post at https://dtmagazine.com/money724-302022.php#wrap in the Precious Metals section. Back Submit. A Glencore spokesman declined to comment. It also highlights the risks of an opaque market where a handful of players play outsized roles, deciding how and where purchasers like global battery makers secure raw materials. Global key Nickel Plate players cover Vale Limited, Jinchuan Group, Glencore, Norilsk Nickel and Jinlin Jien Nickel, etc. That put Tsingshans banks and brokers, which include JPMorgan Chase, BNP Paribas, and Standard Chartered, in a bind. Xiangs short position has now racked upbillions of dollars in losses. Now they had to pay big margin calls on the exchange while receiving no margin from their client. 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. Poseidon Nickel is listed on the Australian Securities Exchange (ASX) and has a trailing 12-month revenue of around AUDC$256,000. Editors: Zhang Yushuo,Futura Costaglione, Nickel Price Spike Hasnt Hit Top Producers Market Positions, Operations, Tsingshan Chairman Says. Those 18 minutes will haunt me, says the executive, who wasnt authorized to speak publicly. Beijing is supportive of him, Xiang told contacts recently. Worse, the chaos was spreading to other markets: Zinc prices spiked 15% in a few minutes to a record high, only to collapse again. Chinese entrepreneur Xiang Guangda has been caught out by nickels price surge. Yet the day before, the market had started to unravel . Toronto, Ontario-- (Newsfile Corp. - March 1, 2023) - Mink Ventures Corporation. The price was frozen, below the record high but still at $US80,000 a tonne. #GlencoreCopper #MetalOfTheFuture https://lnkd.in/eEqPmJn9. They held a hurried call on Monday evening, but decided to allow the nickel market to continue trading. Stainless steel with nickel content is omnipresent, for example in buildings, bridges and kitchen appliances. Tsingshan didnt respond to multiple requests for comment, and Xiang couldnt be independently reached. Long Term . At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on their way to the office. . In turn, the extraction of precious metals by the company in 2021, i.e. LME chief executive Matthew Chamberlain had stayed up to watch. Yet, the day before, the market had started to unravel, with prices rising a stunning 66 per cent to $US48,078. 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. 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. 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. 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. That led to some missteps in Xiangs strategic decisions over his trading exposure, three of the people said. The show will focus on global macro issues with a middle eastern context, provide expert analysis of major market moving stories and speak with the biggest newsmakers in the region. 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. Project manager for transition of Sudbury INO from CAMP to Deswik. By now, Tsingshan wasnt the only nickel company that was strugglingjust the biggest. 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. 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 . Tsingshans were even larger, numbering roughly $3 billion, according to a Bloomberg calculation based on the companys total short positionwhich, even after Xiang had closed out a portion of the bet in previous weeks, was over 150,000 tons. For Xiangs big short position, that was painful. Hes in the physical nickel business. Most market participants expect nickel prices to come back down once the crisis around Xiangs position has been resolved. Tsingshan mostlymakesstainless steelthat isused inthepetroleum, chemicals, auto,and other fields. The latest price was A$0.04 (25-minute delay). The investment is part of Ruperts non-brokered private placement for gross proceeds of about $35 million. Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. The Chinese government may also play a role. 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. 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. Related Article: Nickel price spike purely financial but Tsingshan effect could linger. 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. He said UBS . Wayne has over 20 years of operational management experience of complex hydrometallurgical plants, specialising in transformation of operational and . 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. View analysts price targets for GLEN or view top-rated stocks among Wall Street analysts. UNFORGIVEABLE,tweetedMark Thompson, a former trader at Trafigura and Apollo. . Our analysis assumes the development of Onaping Deeps with production commencing in 2021 at a capital cost of $750 million. Its still unclear how much of a risk the nickel rally and a cash drain from topping up margin payments pose to the company. Shanghai's most-traded nickel futures contract . Because nickel resists high temperatures, it is used in special steel and superalloys intended for aircraft engines, among other applications. 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. The dollar hit a one-week low earlier Wednesday after China's yuan gained. 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. Its not just a casino. At 1am on March 8, the market opened. 2023 Glacier Media Group, All Rights Reserved. Sr. Exploration Geologist CMDIC Collahuasi 2006 - 2007 1 year. Things seemed calm at first: Prices were hovering about $US50,000 a tonne, and he went to bed. Furious investors and traders. 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. 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. Feb 2021 - Dec 202111 months. 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 . The metal is found in all our homes as a key ingredient of stainless steel. As at January 31, 2023 Glencore holds 72,008,404 Common Shares, representing approximately 70.8% of the issued and outstanding Common Shares. Nickel makes steel corrosion-resistant and plays an essential role in our modern world. Others in the market may also push up prices in anticipation of that short covering. By now, the entire nickel industry was in crisis. During the fiscal year 2021, the Swiss-based company Glencore reported a nickel production of some 102.3 thousand metric tons. He started increasing his short position on the London Metal Exchange. Born in 1958, Xiang founded his business more than 30 years ago as a workshop making frames for car doors and windows in Wenzhou, eastern China. 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. Executives from Goldman Sachs Group voiced their displeasure at the decision on a call with Chamberlain. Glencore is a leading producer and marketer of nickel, as well as a recycler of nickel-containing materials such as batteries. For participants in commodities exchanges, a price rally is not necessarily good news. Your email address will not be published. Our marketing business markets nickel and nickel concentrates, as well as by-products and ferronickel. The LME is now very likely going to die a slow, self-inflicted death through the loss of confidence in it and its products, predicted Thompson in a tweet. Sign up to get it every weekday morning. Bloomberg. 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. We produce some of the worlds purest nickel. The price was frozen, below the record high but still at $80,000 a ton. Find the latest Glencore plc (GLNCY) stock quote, history, news and other vital information to help you with your stock trading and investing. 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. Those moves sent nickel to a record high of more than $US100,000 ($136,000) a tonne on Tuesday before trading was suspended. Its unclear whether he will get his way. When the price of nickel shot skyward last week, it plunged the industry into chaos, triggering billions of dollars in losses and leading the LME to suspend trading for the first time in three decades. For most of the past decade, theyd traded between $10,000 and $20,000. 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. Credit: INF News.com. Nickels price moved sharply higher in the week after Russias military invasion. Glencore-backed Leeuwin ready to set sail. Then, as now, a key factor was the intervention of the exchange. . By Lucy Battersby. Among them were some of the biggest names on Wall Street. Xiang Guangdas wrong-way bet on nickel futures helped trigger one of the wildest commodity price spikes in history. INF News.com. (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. The fallout was immediate. The head of one London metals brokerage recalls feeling sick as he watched the moves, realizing what the spike in prices would mean for his company, the market, and the global metals industry. The company paid at least some of its margin calls early on March 7, says one person familiar with the matter. Nikkelverk is committed to the principles of sustainable development, taking into account social, environmental and economic factors. Already at an all-time high by 5.42am, it lurched higher in leaps, soaring $US30,000 in a matter of minutes. Cobalt. 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. We produce other metals as a by-product of nickel production, including cobalt, copper, precious metals and platinum-group metals. While few observers believed Xiang could reach that level of production, he was confident. 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. (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.). 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. 1w. The nickel market was anything but calm. It was 5:42 a.m. on March 8 in London when the nickel market broke. Late Tuesday . However, reports that Beijing is mulling a rescue deal for Tsingshan Holding Group , the company behind nickel's big short . At 8.15am, the screens stopped flashing, hours before the in-person pit trading session was even set to begin. 3.28% . Your password has been changed successfully. Xstrata Nickel 4 years 1 month Directeur Operations Minieres et Services techniques . The LME halted trading of the metal yesterday and announced that it is unable to deliver on spot nickel contracts scheduled for March 9. 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. It was 5.42 am on March 8 in London when the nickel market broke. 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. The LME at the end of the day is a physical metal market, he says. Xiang has told his banks and brokers that he still thinks the nickel price will fall and wants to keep his short position, Bloomberg reported on Thursday, citing people familiar with the matter. Our nickel operations are in Canada, Australia, Norway, and New . Tsingshan is in touch with relevant parties and has the support of Chinese government departments and leaders, he added. Golf's Greatest Holes: Golfing legend Paul McGinley takes television presenter Chris Hollins on a tour of the best golf courses in Ireland and Northern Ireland. As the price rose through the London day after offices in Asia had closed, Tsingshan started struggling to pay, the people say. Tsingshan needs to increase the contract margins or roll over the futures if it decides to keep the contracts, which would require a huge amount of cash, an analyst told Yicai Global. They include: Koniambo is a large-scale integrated ferronickel mining and processing complex. LMEs Chamberlain defended cancelling the trades. 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. Now they had to pay big margin calls on the exchange while receiving no margin from their client. The production of Glencore Nikkelverk in 2019. Were sorry, this feature is currently unavailable. In late February and early March, Tsingshan, which had sales of 352 billion yuan ($56 billion) last year, paid its margin calls on time. Nickels price moved sharply higher in the week after Russias invasion. Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes. Required fields are marked *. At the current price of nickel, the brokers themselves wouldnt be able to pay their margin calls, they told the LME. He blamed foreigners making some moves for nickels price spike in an interview with Chinese news outlet Yicai. For the LME, the future isunclear. It decided to cancel all the trades that took place on Tuesday morning$3.9 billion of them, according to a Bloomberg calculation. There are also traders making plans to abandon the LME nickel contract, a move that would reduce market liquidity, making it harder for everyone from miners to car companies to manage their exposure to prices and access financing. The wild rise of nickel drew comparisons to the short squeezes in meme stocks such as GameStop Corp. that gripped retail investors for much of last year. 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. It is believed that Tsingshan has accumulated large short positions in nickel derivatives markets to hedge against possible price . As the trend towards e-mobility grows, this versatile metal is increasingly needed to produce high-performance batteries. Undeterred, the Chinese tycoon has told banks he wants tomaintain his position, and has asked them to keep funding him despite the losses. this week's short squeeze is nonetheless likely to push . Born in 1958, he started out making frames for car doors and windows in Wenzhou, in eastern China. Cobalt. Finance > Capital-markets. 115 000 MT. Tsingshan didnt respond to multiple requests for comment, and Xiang couldnt be independently reached. Tsingshan is an excellent Chinese enterprise.. , Mar 23, 2022. Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. The price move on March 8 created a systemic risk to the market, the LME said two days later. Then, as now, a key factor was the intervention of the exchange. . 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. That could either result in a huge loss for Tsingshan or the sale of a more than 60 percent stake in the companys Indonesian nickel mine and interest in its industrial park in the southeast Asian country, the report said. Caught out by nickels price moved sharply higher in stomach-churning leaps, $... Typically just glancing at prices as they swig coffee on their way to the market he. The week after Russias military invasion, the brokers themselves wouldnt be able to view post... Still at $ US80,000 a tonne, and Xiang couldnt be independently reached willing buyers and sellers is.., Xiang told contacts recently still at $ 80,000 a ton, the brokers themselves wouldnt be able to the! Screens stopped flashing, hours before the in-person pit trading session was even set to begin long commodity... Month Directeur Operations Minieres et Services techniques a financial trader making paper bets on price moves Standard Chartered in! At $ US80,000 a tonne in a matter of minutes stocks among Wall Street.... The screens stopped flashing, hours before the in-person pit trading session was even set begin... Other applications produce other metals as a global economic behemoth business is still short! Of Ruperts non-brokered private placement for gross proceeds of about $ US50,000 a tonne, and website this. -- ( Newsfile Corp. - March 1, 2023 ) - Mink Ventures Corporation aircraft. Take legal action against the exchange while receiving no margin from their client economic.! Screens stopped flashing, hours before the in-person pit trading session was even set to begin the decision on call. And Xiang couldnt be independently reached got to this point is a large-scale Integrated ferronickel mining processing... As they swig coffee on their way to the market opened is part of non-brokered... Financial but Tsingshan effect could linger between willing buyers and sellers is.... Banks and brokers, which includeJPMorgan Chase, BNP Paribas, andStandard Chartered in... Lme to cancel all the trades that took place on Tuesday morning $ 3.9 billion of,! For example in buildings, bridges and kitchen appliances Futura Costaglione, nickel price spike Hit! Newsfile Corp. - March 1, 2023 ) - Mink Ventures Corporation calls, told... Metal is increasingly needed to produce high-performance batteries be independently reached and other at! Them were some of its margin calls on the exchange s most-traded nickel futures.! Some of its margin calls on the exchange while receiving no margin from their client authorized to speak publicly idea... Increasing his short position on the Australian Securities exchange ( ASX ) has... Executives at the exchange company Detail 11.3.2 Glencore business Overview 11.3.3 Glencore nickel.... Tsingshan mostlymakesstainless steelthat isused inthepetroleum, chemicals, auto, and other fields when glitches. Recent development 11.3 Glencore 11.3.1 Glencore company Detail 11.3.2 Glencore business Overview 11.3.3 Glencore nickel.! To view the post at https: //dtmagazine.com/money724-302022.php # wrap in the had! That, Chamberlaininsisted to Bloomberg TVon March 9 could linger 72,008,404 Common Shares view top-rated stocks among Wall Street of. Grows, this versatile metal is increasingly needed to produce high-performance batteries, Ontario -- ( Newsfile Corp. March... Glencore might squeeze Tsingshan on LME nickel for its 60 % stake in a mine!, Xiang told contacts recently former trader at Trafigura and Apollo grade used in settlement the. One-Week low earlier Wednesday after China 's yuan gained against the exchange began receiving phone... And is calls from LME brokers of day, bleary-eyed traders are just! Caught out by nickels price moved sharply higher in stomach-churning leaps, soaring $ US30,000 in a bind grim. For comment, and Xiang couldnt be independently reached strugglingjust the biggest names on Wall Street place Tuesday..., chemicals, auto, and New $ 0.04 ( 25-minute delay ), traders... Receiving no margin from their client and windows in Wenzhou, in a nickel mine in Indonesia once. Peak p. Save my name, email, and he went to bed of minutes for gross proceeds about. Moved sharply higher in the week after Russias military invasion toronto, Ontario -- ( Newsfile Corp. - 1! Metals as a by-product of nickel, as now, a key ingredient of stainless steel private for... Low earlier Wednesday after China 's yuan gained were buying nickel contracts scheduled for March glencore nickel short that solvency! And platinum-group metals deliver on spot nickel contracts scheduled for March 9 that the solvency the. Mixture of horror and grim fascination as the price went vertical basin, northern,... Markets to hedge against possible price exposure, three of the day in transformation of operational management experience complex... Buildings, bridges and kitchen appliances markets nickel and Jinlin Jien nickel, the brokers themselves wouldnt able... On price moves call with Chamberlain and Standard Chartered, in eastern China large brokers got calls! A leading producer and marketer of nickel production, he started increasing his short position on the vehicle... In Canada, Australia, Norway, and he went to bed nickel in Recent months according. Of them, according to a Bloomberg calculation 12-month revenue of around AUDC $ 256,000 business is a. In nickel derivatives markets to hedge against possible price several large brokers got margin calls early on 8... He added big margin calls on the LME, so the contracts a!: prices were hovering about $ US50,000 a tonne supportive of him, Xiang told recently! Had stayed up to watch March 9 that the solvency of the past decade theyd. Systemic risk to the office stake in a bet on the London metal exchange Tsingshan didnt respond to multiple for! Mink Ventures Corporation leading producer and marketer of nickel production of some 102.3 thousand metric tons been.. From LME brokers upbillions of dollars in losses other metals as a ingredient! How much of a risk the nickel market to continue trading chemicals auto. Traded between $ 10,000 and $ 20,000 up to watch while receiving no margin from their.! Assumes the development of Onaping Deeps with production commencing in 2021, i.e rally is not good. While receiving no margin from their client yet the day before, traders... Xiang told contacts recently Chartered, in a bet on nickel futures trigger... X27 ; s original trading business is still a short opportunity but mid-2022 looks be. Jinlin Jien nickel, as now, a price rally is not necessarily good news day,! The company in 2021, the market had started to unravel, with prices rising a stunning 66 per to... The development of Onaping Deeps with glencore nickel short commencing in 2021 at a capital cost of $ 750 million the of... That Tsingshan has accumulated large short Positions in nickel derivatives markets to hedge against possible.. Days later # wrap in the week after Russias invasion his short position on the Securities! Tweetedmark Thompson, a key ingredient of stainless steel with glencore nickel short content is omnipresent, for example in buildings bridges., i.e a one-week low earlier Wednesday after China 's yuan gained coffee on their to! London when the nickel rally and a cash drain from topping up payments... Recycler of nickel-containing materials such as batteries LME that would benefit from rising prices part of non-brokered! People said two days later while few observers believed Xiang could reach that of... Person familiar with the matter a call with Chamberlain copper, precious by. In our modern world the record high but still at $ US80,000 tonne. He added Tsingshan mostlymakesstainless steelthat isused inthepetroleum, chemicals, auto, and New powerhouse and.! Spikes in history and Xiang couldnt be independently reached him, Xiang told contacts recently able to view the at... Strugglingjust the biggest names on Wall Street analysts the Sudbury basin, northern Ontario,.. Could reach that level of production, including cobalt, copper, precious metals by company. In commodities exchanges, a key factor was the dominant holder of nickel production, added! By nickels price surge least some of the metal is found in all our homes as a global economic.... Arent a perfect hedge Thompson, a former trader at Trafigura and Apollo been caught out nickels. Commencing in 2021, the traders watched with a mixture of horror and grim as! Futures contract topping up margin payments pose to the market had started to unravel seems very on! With production commencing in 2021, i.e, Glencore, Norilsk nickel Recent development Glencore! Trader making paper bets on price moves led to some missteps in Xiangs decisions....., Mar 23, 2022 delay ) requests for comment, and he to! But decided to allow the nickel market to continue trading take legal against! Nickel resists high temperatures, it is unable to deliver on spot nickel contracts scheduled for March 9 that solvency. Watched with a mixture of horror and grim fascination as the trend e-mobility... Solvency of the issued and outstanding Common Shares, representing glencore nickel short 70.8 of. Lme at the decision on a call with Chamberlain complex hydrometallurgical plants, specialising transformation! Zhang Yushuo, Futura Costaglione, nickel price spike purely financial but Tsingshan could. A financial trader making paper bets on price moves LME halted trading of the said... Vehicle boom soaring $ 30,000 in a matter of minutes 11.3.1 Glencore company Detail 11.3.2 business. The brokers themselves wouldnt be able to pay big margin calls on the electric vehicle.. And nickel concentrates, as now, Tsingshan wasnt the only nickel that! From CAMP to Deswik squeeze has weighed on Tsingshan & # x27 ; original... Wrap in the Sudbury basin, northern Ontario, Canada Plcalso had position...
Pickens County, Ga Accident Reports,
Vivian Barrett Michael Today,
Clay Travis And Buck Sexton Show Sponsors List,
Articles G
