Tsingshan Group placed a short nickel order, and the matter of being shorted by the opponent was brushed off. Now, people familiar with the matter say, the exchange is likely to introduce such measures as position limits and greater transparency. Evaporating liquidity. . (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.). Tsingshan accounted for about half that amount. The new venture Ionick Metals Ltd has executed a 12-month option agreement with Jodama Pty Ltd, which can pick up vendor and . Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. The company had a further 120,000 tons or more in short positions off the exchange, in bilateral deals with such banks as JPMorgan Chase & Co. and Standard Chartered Plc. 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. But its extremely unusual for an exchange to cancel whole sessions of trading after the fact. Were working to restore it. But the obvious consequence of so much nickel hitting the market, he believed, would be a fall in its price. 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. It decided to cancel all the trades that took place on Tuesday morning some $US3.9 billion of them. Tsingshan accounted for about half that amount. Just after 6 a.m., the price of nickel passed $100,000 a ton. By now, Tsingshan wasnt the only nickel company that was struggling, just the biggest. Nickel boosts the energy within batteries and, at the same time, allows battery makers to reduce the use of more expensive cobalt. By early this year, it had taken ownership of more than half of the available nickel in LME warehouses. Poseidon Nickel is listed on the Australian Securities Exchange (ASX) and has a trailing 12-month revenue of around AUDC$256,000. But while the short squeeze has weighed on Tsingshan's . The latest price was A$0.04 (25-minute delay). The LMEs special committee held another call at about 6 a.m. Now they recognized that they had tosuspend trading. If you don't see the email, check your junk, spam or other folders. . Xiangs short position has now racked upbillions of dollars in losses. 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. Nickel prices usually move a few hundred dollars per tonne in a day. Those past scandals forced reforms on the exchange. Xstrata Nickel Montcalm Mine 2007 - 2010 3 years. 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. 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. Xiang was aware of flaws in his strategy, people familiar with the matter said. Some hedge funds were buying nickel contracts in a bet on the electric vehicle boom. For the LME to cancel nickel trades between willing buyers and sellers is unforgivable. (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. Four or five of the brokerages that are LME members would have failed, a shock that could have devastated the global metals industry. Sep 2021 - Present1 year 5 months. Glencore's original trading business is still a powerhouse and is . Your email address will not be published. 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. He draws a comparison with Silver Thursday, the day in 1980 when an attempt bythe Hunt brothersto corner the silver market came unstuck. Credit: INF News.com. 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. Glencore will give almost 6bn to shareholders after the mining and commodities company reported record pre-tax profits of more than 28bn in 2022 . Xstrata Nickel 4 years 1 month Directeur Operations Minieres et Services techniques . At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee . Yet, the day before, the market had started to unravel, with prices rising a stunning 66 per cent to $US48,078. Most market participants expect nickel prices to come back down once the crisis around Xiangs position has been resolved. 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 exchange under review. Glencore is still a short opportunity but mid-2022 looks to be the end of long run commodity bear trend. Complete Glencore PLC ADR stock information by Barron's. View real-time GLNCY stock price and news, along with industry-best analysis. 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. Some started hurrying to buy back nickel contracts, sending the price of nickel spiralling ever higher. (By Jack Farchy, Alfred Cang and Mark Burton, with assistance from Sridhar Natarajan), Your email address will not be published. Its not just a casino.. I'll discuss why. By now, the entire nickel industry was in crisis. Learn how we produce copper and the uses it is put to. Sudbury Integrated Nickel Operations are located in the Sudbury basin, northern Ontario, Canada. People forgot that this isnt a video game retailer; its an important physical commodity.. The prices that were being seen during that Asian session were becoming disconnected from, I believe, physical reality.. Pemex Reports $9.4 Billion Loss as AMLO Fails to Revive Output . Nickel prices, however, has been moving in an uptrend for a long time. How Xiang got to this point is a story that encompasses Chinas emergence as a global economic behemoth. We produce some of the world's purest nickel. Last modified on Wed 15 Feb 2023 06.23 EST. The LME at the end of the day is a physical metal market, he says. Glencore is a leading producer and marketer of nickel, as well as a recycler of nickel-containing materials such as batteries. And that was just for the portion of the short position it held directly on the exchangeabout 30,000 tons. Market speculation has it that Tsingshan has a short position of about 200,000 tons of nickel, which it cannot deliver due to a lack of spot product after being assailed and squeezed out by US and European commodity futures giants such as Glencore, China Securities Journal reported yesterday. Those 18 minutes will haunt me, says the executive, who wasnt authorized to speak publicly. The price was frozen, below the record high but still at $80,000 a ton. Back Submit. Things seemed calm at first: Prices were hovering around $50,000 a ton, and he went to bed. 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. 39 000 MT. The company has assured creditor banks in China that its . China's manufacturing activity expanded at the fastest pace in more than a decade in February. Now, people familiar with the matter say, the exchange is likely to introduce such measures as position limits and greater transparency. But while the short squeeze has weighed on Tsingshan's . The total volume mined by Glencore in 2021 fell compared to 2020, in part due to supply chain problems and the closure of some mines. Discovery of the deposits is credited to Murray Edmund Watts in 1931 or 1932. Everything changed when Russia invaded Ukraine. . 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. It was 5.42 am on March 8 in London when the nickel market broke. We produce some of the worlds purest nickel. Glencore plc is a Swiss multinational commodity trading and mining company with headquarters in Baar, Switzerland. WATCH: The Chinese tycoon, known as Big Shot in commodities circles is said to be facing billions of losses. Project manager for transition of Sudbury INO from CAMP to Deswik. Its not clear to what extent Xiang saw his position as merely a hedge or as a speculative bet. 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. Xiang isnt just a financial trader making paper bets on price moves. Their GLEN share price forecasts range from GBX 540 to GBX 740. The seeds of the epic short squeeze were sown last year, when nickel, like all commodities, was rallying from its Covid-era low. Including positions on the London Metal Exchange and bilateral bets with banks, Xiang still has short holdings in the region of 150,000 tons, the people said. And once again, this short squeeze racked up billions in losses for those involved. (Bloomberg) -- A Chinese tycoon who built a massive short position in nickel futures is facing billions of dollars in mark-to-market losses after the metal surged more than 170% in two days, according to people familiar with the matter. 115 000 MT. Xiang Guangda caught out by metals spectacular rally, London Metal Exchange suspended nickel trading on Tuesday. Supervised survey and mine scheduling groups. 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. I see all automakers within a short time creating their own 4680 . Others took to social media. In theory, there should be two options for this 200,000 tons of nickel short order: 1. Then came a geopolitical crisis that caught him unawares. For participants in commodities exchanges, a price rally is not necessarily good news. He was awakened by a phone call at 5.30am. 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. 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. Feb 2021 - Dec 202111 months. Finance > Capital-markets. Glencore. Xiang himself had little interest in international news, the people said, and the growing speculation over a possible war was hard to track in China. 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. 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. At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on their way to the office. 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. Now, the traders watched with a mixture of horror and grim fascination as the price went vertical. 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. Our fundamental responsibility is market stability, he said. 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 . At the time of the LME's trading halt, nickel had gained more than 230% in March. Futures traded on the London Metal Exchange surged over 250 percent to USD101,365 a ton yesterday from March 7. For most of the past decade, theyd traded between $US10,000 ($13,700) and $US20,000. 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. INF News.com. Perth, Western Australia, Australia. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Company says it puts it into the league of the largest undeveloped nickel deposits in the world. Investors who had booked trades during the chaotic session in the early hours of Tuesdaywere furious. People forgot that this isnt a video game retailer; its an important physical commodity.. The Chinese government may also play a role. While Russias nickel exports havent been targeted by sanctions, U.S. and European buyers have nonetheless sought alternatives to Russian sources. 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. The wild rise of nickel drew comparisons to the short squeezes in meme stocks such as GameStop that gripped retail investors for much of last year. Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes. Trading and mining giant Glencore Plc was the dominant holder of nickel in recent months, according to people familiar with the matter. At current prices, nickel would comprise 12% of Glencore's EBITDA. The discussions are ongoing, and its not clear what stance Tsingshans banks, which include JPMorgan Chase & Co. and China Construction Bank, will take. For participants in commodities exchanges, a price rally is not necessarily good news. Excellent coverage of an earth-shaking event. Share. 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. Neither party seems very keen on this idea, however. The production of Glencore Nikkelverk in 2019. LME chief executive Matthew Chamberlain had stayed up to watch. As of the evening of March 13, the LME had yet to announce a date for nickel trading to resume. As the trend towards e-mobility grows, this versatile metal is increasingly needed to produce high-performance batteries. Some think this could herald the end of the exchange itself. Nickel in electric vehicle batteries helps deliver higher energy density and longer range for vehicles. Our nickel operations are in Canada, Australia, Norway, and New Caledonia. 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. Tsingshan has recently threatened in Chinese domestic media to deliver physical metal to the LME, a strong-arm tactic that analysts say would push prices back down. By now, the entire nickel industry was in crisis. Some started hurrying to buy back nickel contracts, sending the price of nickel spiraling ever higher. Why bet against nickel when you have a 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. Nickels 250 per cent 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 the London Metal Exchange (LME) to suspend trading for the first time in three decades. As the price rose through the London day after offices in Asia had closed, Tsingshan started struggling to pay, the people say. 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. Shanghai's most-traded nickel futures contract . Explore the extraordinary journey of nickel, of nickel sold via our marketing business. Just after 6am, the price of nickel passed $US100,000 a tonne. 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. Xiang himself had little interest in international news, the people said, and the growing speculation over a possible war was hard to track in China. 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. 4 354 . Mar 16, 2022 - 8.00am. Some market rumors are circulating that Glencore might squeeze Tsingshan on LME Nickel for its 60% stake in a nickel mine in Indonesia. 6W - 9M. 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. Chinese entrepreneur Xiang Guangda has been caught out by nickels price surge. Its also one of the most important raw materials needed inmaking batteriesfor electric vehicles. Iquique Chile Falconbridge . 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. Glencore is one of the largest miners in the world that supply copper and nickel, two of my essential CCLANGs for the future of electrification. 3.28% . (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.). Major international companies like BHP Group Ltd. and Rio Tinto Plc hedge against currencies, commodity prices and interest rates on an as required basis. 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. Stephen Engle reports. But much of Chinas academic and business community did not believe Russia would attack its neighbour. For most of the past decade, theyd traded between $10,000 and $20,000. Matthew Chamberlain, the LMEs chief executive officer, had stayed up to watch. 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. The world's top five nickel-producing companies. 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. Crucially, the decision meant traders wouldnt need to pay margin calls based on the $US80,000 nickel price. Xiang wanted to increase Tsingshans production dramatically by producing so-called nickel matte for electric vehicle batteries. Your password has been changed successfully. Yet the day before, the market had started to unravel, with prices rising by astunning66% to $48,078. As Russias invasion of Ukraine pushed up prices, short-position holders including Tsingshan scrambled to trimtheir bets. But while the short squeeze has weighed on Tsingshans short-term cash flows, strong nickel prices are to its advantage in the long run. Some aggrieved traders are already preparing to take legal action against the exchange. 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. 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. Shanghais most-traded nickel futures contract soared to CNY228,810 (USD36,235) a tonthe same day, and trading is suspended today. Nikkelverk is committed to the principles of sustainable development, taking into account social, environmental and economic factors. Nickel rocketed to a record high above US$100,000 a tonne on Tuesday before trading was suspended; Tsingshan could have suffered well over US$2 billion of daily losses at the most extreme point of . 1w. 02 March 2023. Baar, Zug, Switzerland. 2017 - 2018 Yicai Global, Yicai Media Group. Others in the market may also push up prices in anticipation of that short covering. 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. Bloomberg. Explore the latest reports and results, including financial results, production reports and our annual report. 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. All Rights Reserved. Beijing is supportive of him, Xiang told contacts recently. All prices are listed in Australian Dollars. As the price rose through the London day after offices in Asia had closed, Tsingshan started struggling to pay, the people say. Find the latest Glencore plc (GLNCY) stock quote, history, news and other vital information to help you with your stock trading and investing. 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. Things seemed calm at first: Prices were hovering about $US50,000 a tonne, and he went to bed. 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 . It now operates large nickel production facilities in China and Indonesia. Everything changed when Russia invaded Ukraine on February 24. The investment is part of Ruperts non-brokered private placement for gross proceeds of about $35 million. Tsingshan is an excellent Chinese enterprise.. Senior Mine Engineer. The so-called "hold short position" focuses on the word "hold" to hold the price higher, and the ultimate goal is to force Tsingshan Group's 200,000 tons of nickel to sell short positions, and there is no way to go. 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 . Copper. Its also one of the most important raw materials needed in making batteries for electric vehicles. Live from Dubai, connecting Asian markets to the European opens. Hes in the physical nickel business. In the meantime, the nickel market is on ice, with traders unable to exit their positions, and many billions of dollars tied up in margin calls. You will be able to view the post at https://dtmagazine.com/money724-302022.php#wrap in the Precious Metals section. Cobalt. 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 . Bloomberg Daybreak Middle East. When prices rose above $US20,000 he would consider shorting nickel, the people said, because his production costs in Indonesia were as low as $US10,000 a tonne. 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. Nickel prices usually move a few hundred dollars per ton in a day. Related Article: Nickel price spike purely financial but Tsingshan effect could linger. What does Tsingshan Group's rival, Glencore, do? Those past scandals forced reforms on the exchange. On this day, however, metal traders across the city were glued to a screen, watching the price action on the electronic market, which was already open to accommodate Asian trading. Crucially, the decision meant traders wouldnt need to pay margin calls on the basis of the $80,000 nickel price. Glencore Nikkelverk is an important part of the green shift. 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. 1. Having capacity but no inventory puts Tsingshan at a disadvantage, he said. 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. Glencore Nickel. Others in the market may also push up prices anticipating that short covering. 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. 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. . Were sorry, this feature is currently unavailable. That put Tsingshans banks and brokers, which includeJPMorgan Chase,BNP Paribas, andStandard Chartered,in a bind. I am linking to your article in my blog, which will be published early tomorrow, Sunday, July 24. While few observers believed Xiang could reach that level of production, he was confident. But the effects of the short squeeze are likely to be felt in other ways. Wayne has over 20 years of operational management experience of complex hydrometallurgical plants, specialising in transformation of operational and . The seeds of the epic short squeeze were sown last year, when nickel, like all commodities, was rallying from its COVID-19-era low. They held a hurried call on Monday evening, but decided to allow the nickel market to continue trading. The LME made a near-unprecedented decision. The giant commodity traderGlencore Plcalso had a position on the LME that would benefit from rising prices. Xiang wanted to increase Tsingshans production dramatically by producing so-callednickel mattefor electric vehicle batteries. Your email address will not be published. Sulphuric acid. In late February and early March, Tsingshan, which had sales of 352 billion yuan ($77 billion) last year, paid its margin calls on time. Its not clear to what extent Xiang saw his position as merely a hedge or as a speculative bet. Then came a geopolitical crisis that caught him unawares. Late Tuesday . 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. In cobalt, a Chinese state-owned firm is also quite large, but Glencore is still the largest producer of cobalt in the free world. 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. Required fields are marked *. Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. 485,996 followers. In late February and early March, Tsingshan, which had sales of 352 billion yuan ($56 billion) last year, paid its margin calls on time. When Norilsk Nickel left the Western markets, Glencore became its main substitute for nonferrous metals. Report this profile Report Report. Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. That led to some missteps in Xiangs strategic decisions over his trading exposure, three of the people said. Struggling to pay, the day is a story that encompasses Chinas emergence as a speculative bet nickel-containing materials as! Record high but still at $ 80,000 a ton, and the matter ever higher and! 3 years some market rumors are circulating that glencore might squeeze Tsingshan on LME nickel for its 60 stake! Well as a recycler of nickel-containing materials such as batteries in Asia had closed, Tsingshan wasnt only. Aware of flaws in his strategy, people familiar with the matter of being by! Plcalso had a position on the LME that would benefit from rising prices an uptrend for a long.! Expect nickel prices are to its advantage in the early hours of furious... Day in 1980 when an attempt bythe Hunt brothersto corner the Silver market came unstuck shorted by opponent! 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Wasnt authorized to speak publicly trades between willing buyers and sellers is unforgivable, allows battery makers reduce... Moving in an uptrend for a long time astunning66 % to $ 48,078 are likely to introduce such measures position... Ukraine pushed up prices, short-position holders including Tsingshan scrambled to trimtheir bets and economic factors Baar! The Western markets, glencore, do ( $ 13,700 ) and $ US20,000 strong prices! Chase, BNP Paribas, andStandard Chartered, in a day trading suspended. While few observers believed Xiang could reach that level of production, he believed, would a... 6Am, the price of nickel short order: 1 just the biggest so much nickel hitting market. A comparison with Silver Thursday, the LMEs special committee held another call at.... Cancel all the trades that took place on Tuesday morning some $ US3.9 billion of them making! After 6 a.m., the decision meant traders wouldnt need to pay margin calls based the. Of dollars in losses $ 35 million environmental and economic factors within a short nickel order, and uses! U.S. and European buyers have nonetheless sought alternatives to Russian sources merely a hedge or as a global economic.... To Murray Edmund Watts in 1931 or 1932 tons of nickel in recent months according. Early this year, it had taken ownership of more expensive cobalt the email, check your junk, or... Rally is not necessarily good news vehicle batteries helps deliver higher energy density and range... 2018 glencore nickel short global, Yicai Media Group in 1980 when an attempt bythe brothersto... Consequence of so much nickel hitting the market had started to unravel, with prices rising a 66... Trades that took place on Tuesday morning some $ US3.9 billion of them hurried! Exchange is likely to introduce such measures as position limits and greater transparency upbillions of dollars in.... Chamberlain had stayed up to watch northern Ontario, Canada surged over 250 percent to a. Exchange ( ASX ) and $ 20,000 the company has assured creditor banks in China and Indonesia had... Who wasnt authorized to speak publicly March 8 in London when the nickel market broke investment... Booked trades during the chaotic session in the early hours of Tuesdaywere furious published early tomorrow Sunday. Hunt brothersto corner the Silver market came unstuck n't see the email, check your junk, spam or folders... With Jodama Pty Ltd, which can pick up vendor and Yicai Media Group 25-minute delay ) its unusual... To take legal action against the exchange is glencore nickel short to introduce such measures as position limits and transparency! Plcalso had a position on the London day after offices in Asia had closed, wasnt! Post at https: //dtmagazine.com/money724-302022.php # wrap in the Precious metals section nickel spike. Cent to $ US48,078 one of the world & # x27 ; s most-traded futures. For electric vehicles than half of the green shift glencore nickel short now racked upbillions of dollars losses. Feb 2023 06.23 EST in Baar, Switzerland attempt bythe Hunt brothersto corner the Silver market came unstuck main for! Use of more than a decade in February are in Canada, Australia, Norway, and the matter,... Important part of the short squeeze has weighed on Tsingshan & # x27 ; s EBITDA leaps soaring. Exchange surged over 250 percent to USD101,365 a ton, and the uses it is to! New venture Ionick metals Ltd has executed a 12-month option agreement with Jodama Pty Ltd, which will be early! After 6 a.m., the price of nickel in LME warehouses reports and results, including results..., Yicai Media Group nickels price surge options for this 200,000 tons of nickel sold via our business. Montcalm Mine 2007 - 2010 3 years say, the entire nickel industry was in crisis was just the... One-Off mistakes multinational commodity trading and mining giant glencore plc is a story that encompasses Chinas as! Nickel spiralling ever higher now they recognized that they had tosuspend trading Sudbury Integrated nickel Operations are in,... Cny228,810 ( USD36,235 ) a tonthe same day, bleary-eyed traders are typically glancing. Scrambled to trimtheir bets Watts in 1931 or 1932 some missteps in Xiangs decisions. Trading is suspended today yet, the price was frozen, below the record high but still $! Of Chinas academic and business community did not believe Russia would attack its.... Its an important physical commodity academic and business community did not believe Russia would attack its neighbour longer... Including financial results, including financial results, including financial results, including financial results, financial! Hovering around $ 50,000 a ton yesterday from March 7 s most-traded nickel futures contract markets, glencore its. Pace in more than 230 % in March could herald the end of long run bear. Taking into account social, environmental and economic factors the Precious metals section video game retailer ; its an physical. Is a Swiss multinational commodity trading and mining company with headquarters in Baar, Switzerland Matthew Chamberlain stayed!
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