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. 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 . Crucially, the decision meant traders wouldnt need to pay margin calls on the basis of the $80,000 nickel price. . 2W - 6W. MINK. It was 5.42 am on March 8 in London when the nickel market broke. This type is different from the mainstream ferro-nickel and nickel pig iron. 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 . 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. 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. 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. Glencore plc was newly . When Norilsk Nickel left the Western markets, Glencore became its main substitute for nonferrous metals. Our marketing business markets nickel and nickel concentrates, as well as by-products and ferronickel. Xiang Guangda caught out by metals spectacular rally, London Metal Exchange suspended nickel trading on Tuesday. Others took to social media. And that was just for the portion of the short position it held directly on the exchange about 30,000 tonnes. At 8.15am, the screens stopped flashing, hours before the in-person pit trading session was even set to begin. Our nickel operations are in Canada, Australia, Norway, and New Caledonia. Your email address will not be published. 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. A decision to close out the 200,000-ton short position would result in a loss of about USD8 billion, the person said. Glencore currently operate two mines in the Sudbury Basin, Nickel Rim South (ca. He went on to pioneer new methods for producing nickel and stainless steel that upended the markets and made his Tsingshan the worlds largest producer of both. 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. Tsingshan mostlymakesstainless steelthat isused inthepetroleum, chemicals, auto,and other fields. 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. 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. He said UBS . By Lucy Battersby. A Glencore spokesman declined to comment. They held a hurried call on Monday evening, but decided to allow the nickel market to continue trading. It was 5.42 am on March 8 in London when the nickel market broke. The nickel market was anything but calm. Russia is the worlds third-largest producer of nickel and its largest exporter of refined nickel metal the type deliverable on the LME. Canada Nickel Company Inc. $1.24. 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. Effectively, it rewound the market to the moment when prices closed on Monday at $US48,078. As the price rose through the London day after offices in Asia had closed, Tsingshan started struggling to pay, the people say. 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. Baar, Switzerland 29 July 2022. Traders and brokers on the open outcry pit at the London Metal Exchange. Undeterred, the Chinese tycoon has told banks he wants to maintain his position, and has asked them to keep funding him despite the losses. Glencore-backed Leeuwin ready to set sail. Tsingshan accounted for about half that amount. But its extremely unusual for an exchange to cancel whole sessions of trading after the fact. For most of the past decade, theyd traded between $10,000 and $20,000. The head of one London metals brokerage recalls feeling sick as he watched the moves, realising what the spike in prices would mean for his company, the market, and the global metals industry. 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. 6W - 9M. For most of the past decade, they'd traded between $10,000 and $20,000. He blamed foreigners making some moves for nickels price spike in an interview with Chinese news outlet Yicai. Xiang didnt believe the rally would last. 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 discussions over loans this week, Xiang told bankers hes confident his company can meet its obligations, according to people familiar. 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. Ore is processed at the Strathcona mill. Yet the day before, the market had started to unravel, with prices rising by astunning66% to $48,078. 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. 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. China imported 3.44 million tonnes of NPI/ferro-nickel in 2020, up by 79.89% year on year, while Indonesia's material imports came to 2.73 million tonnes in 2020, up 99.6% from a year earlier, according to China Customs data. He started increasing his short position on the London Metal Exchange. But while the short squeeze has weighed on Tsingshans short-term cash flows, strong nickel prices are to its advantage in the long run. Baar, Zug, Switzerland. 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. In late February and early March, Tsingshan, which had sales of 352 billion yuan ($56 billion) last year, paid its margin calls on time. But its extremely unusual for an exchange to cancel whole sessions of trading after the fact. Then, as now, a key factor was the intervention of the exchange. Nickel makes steel corrosion-resistant and plays an essential role in our modern world. Nickel is a raw material that is characterized by exceptional resistance and special properties, thanks to which it has many applications. 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. But while the short squeeze has weighed on Tsingshan's . Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes. The LME halted trading of the metal yesterday and announced that it is unable to deliver on spot nickel contracts scheduled for March 9. 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. While few observers believed Xiang could reach that level of production, he was confident. WATCH: The Chinese tycoon, known as Big Shot in commodities circles is said to be facing billions of losses. We had a frenzy based on speculation that accelerated on Monday and Tuesday. That led to some missteps in Xiangs strategic decisions over his trading exposure, three of the people said. By early this year, it had taken ownership of more than half of the available nickel in LME warehouses. Why bet against nickel when you have a nickel business? At current prices, nickel would comprise 12% of Glencore's EBITDA. Yet, the day before, the market had started to unravel, with prices rising a stunning 66 per cent to $US48,078. 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. Those moves sent nickel to a record high of more than $US100,000 ($136,000) a tonne on Tuesday before trading was suspended. 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 . 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 . Related Article: Nickel price spike purely financial but Tsingshan effect could linger. In this position, you will be responsible for the drafting of sales and purchase contracts and related legal documents. 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. 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. Activity . Some started hurrying to buy back nickel contracts, sending the price of nickel spiraling ever higher. 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. In late February and early March, Tsingshan, which had sales of 352 billion yuan ($77 billion) last year, paid its margin calls on time. It was a classic short squeeze, as the pain for Tsingshan, its brokers, and other shorts created a self-reinforcing cycle. Tsingshan Group placed a short nickel order, and the matter of being shorted by the opponent was brushed off. The giant commodity trader Glencore also had a position on the LME that would benefit from rising prices. 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. Nikkelverk is committed to the principles of sustainable development, taking into account social, environmental and economic factors. If you don't see the email, check your junk, spam or other folders. At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee . 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. Executives fromGoldman Sachs Group Inc.voiced their displeasure at the decision on a call with Chamberlain. As Russias invasion of Ukraine pushed up prices, short-position holders including Tsingshan scrambled to trimtheir bets. View analysts price targets for GLEN or view top-rated stocks among Wall Street analysts. Chinese tycoon behind nickels big short has power to fuel more drama. 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. It decided to cancel all the trades that took place on Tuesday morning some $US3.9 billion of them. An empty order of 200,000 tons of nickel may cause Tsingshan Group to lose more than 5 billion US dollars. MT. Required fields are marked *. Several large brokers got margin calls of close to $1 billion each over the course of the day. Now they had to pay big margin calls on the exchange while receiving no margin from their client. People forgot that this isnt a video game retailer; its an important physical commodity.. 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. But today things have reversed, that is, Tsingshan Group has prepared 200,000 . Hes in the physical nickel business. At 1 a.m. on Tuesday, the market opened. ICP( B2-20050348 (AVSP):2014002, By signing up, you agree to our Terms, Privacy Policy. I'll discuss why. 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. Others took to social media. . Trading and mining giant Glencore Plc was the dominant holder of nickel in recent months, according to people familiar with the matter. For participants in commodities exchanges, a price rally is not necessarily good news. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Si estn subiendo los predios de los metales y dedcuieto nuevas forulasparavas frmulas paraformar y tranformar los metales megustaria encontrar una empresa ,organizacin,para si le interereza ase un tratado denegosiar un trato demostraciones y prbarles yensearleslo que estudie transformaciones aliaciones dijitales y la fabricacionde. 39 000 MT. 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. Earlier this week, nickel prices in London spiked by as much as 250 per cent in little more than 24 hours. 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. For a while, it wasunclear which view of the market would prevail. 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 . Then on March 7, nickels price began its parabolic ascent, surging from $US30,000 a tonne to more than $US50,000. This was the most disorderly move in a metal Ive seen in my career, says Mark Hansen, CEO of trading house Concord Resources. 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. During the fiscal year 2021, the Swiss-based company Glencore reported a nickel production of some 102.3 thousand metric tons. Please try again later. Several large brokers got margin calls of close to $US1 billion each over the course of the day. Sep 2021 - Present1 year 5 months. Glencore is the world's biggest producer of cobalt, and is among the top three public copper companies and nickel companies. The metal is found in all our homes as a key ingredient of stainless steel. 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. Tsingshan Holding Group was looking at an $8 billion trading loss after nickel prices soared, The Wall Street Journal reported Tuesday . Leeuwin managing director Chris Piggott was a senior geologist at ASX-listed Bellevue when it defined its core discoveries, and was part of the team that defined the greenfields Nova-Bollinger. 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. 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 . 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. Because nickel resists high temperatures, it is used in special steel and superalloys intended for aircraft engines, among other applications. It is believed that Tsingshan has accumulated large short positions in nickel derivatives markets to hedge against possible price . Neither party seems very keen on this idea, however. While Russias nickel exports havent been targeted by sanctions, U.S. and European buyers have nonetheless sought alternatives to Russian sources. Perth, Western Australia, Australia. All prices are listed in Australian Dollars. 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. Why bet against nickel when you have a nickel business? 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 . Glencore Headquarters. Its also one of the most important raw materials needed inmaking batteriesfor electric vehicles. Pemex Reports $9.4 Billion Loss as AMLO Fails to Revive Output . 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. Glencore is a leading producer and marketer of nickel, as well as a recycler of nickel-containing materials such as batteries. 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, however, has been moving in an uptrend for a long time. Glencore's original trading business is still a powerhouse and is . Xstrata Nickel Montcalm Mine 2007 - 2010 3 years. 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. What does Tsingshan Group's rival, Glencore, do? Crucially, the decision meant traders wouldnt need to pay margin calls based on the $US80,000 nickel price. 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. Now they had to pay big margin calls on the exchange while receiving no margin from their client. Having capacity but no inventory puts Tsingshan at a disadvantage, he said. 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. From a contractual perspective, you may be . Miners, traders, and manufacturers often use the market to make short betsthat is, to make money when prices fall. But the effects of the short squeeze are likely to be felt in other ways. 02 March 2023. Nickel in electric vehicle batteries helps deliver higher energy density and longer range for vehicles. 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. 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. Senior Mine Engineer. Global key Nickel Plate players cover Vale Limited, Jinchuan Group, Glencore, Norilsk Nickel and Jinlin Jien Nickel, etc. The LME made a near-unprecedented decision. 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. 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. . 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. 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. However, reports that Beijing is mulling a rescue deal for Tsingshan Holding Group , the company behind nickel's big short . Then came a geopolitical crisis that caught him unawares. The spike was driven in large part by a short squeeze centred on Chinese tycoon Xiang Guangda, who had amassed a big wager that nickel prices would fall through his company Tsingshan Holding Group. 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. Our positions and operations dont have any problems, Xiang Guangda, who is also the Wenshou-based companys founder, told Yicai Global yesterday. Despite the recent upheaval, his company still remains the biggest in the nickel industry. 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. 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 . The nickel market was anything but calm. Chinese entrepreneur Xiang Guangda has been caught out by nickels price surge. 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. Like Comment Share. Our fundamental responsibility is market stability, he told Bloomberg TV. As the price rose through the London day after offices in Asia had closed, Tsingshan started struggling to pay, the people say. Tsingshans short position could have incurred mark-to-market losses of at least $US2 billion on Monday alone, people familiar with the matter said. We're taking you for a deep dive into the world of copper - a versatile metal and important component for a low-carbon future. 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. Nickel. Those moves sent nickel to a record high of more than $100,000 a ton on Tuesday beforetrading was suspended. Credit: INF News.com. 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. Sign up to get it every weekday morning. Glencore Nikkelverk AS has a modern and complex processing system. I actually stumbled upon the date, March 8, researching gold and silver, both of which began a severe downtrend on that very date. Supervised survey and mine scheduling groups. Some hedge funds were buying nickel contracts in a bet on the electric vehicle boom. The penalty is part of the $1.5 billion Glencore agreed to pay to resolve bribery and market-manipulation probes in the US, UK and Brazil. Vale and Glencore announced today that they've entered a partnership to begin a feasibility study to explore Nickel Rim South. The difference is that nickel is a commodity that touches the entire global economy. Harjavalta nickel smelter in Finland (Credit: Boliden). By now, Tsingshan wasnt the only nickel company that was strugglingjust the biggest. Cobalt. Tsingshan is in touch with relevant parties and has the support of Chinese government departments and leaders, he added. 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. Resetting your password will log you out of all your active Yicai Global sessions. Nickel rocketed to a record high above $100,000 a ton on Tuesday, driven in part by Tsingshan and its brokers activity, before trading was suspended. Earlier this week, nickel prices in London spiked byas much as 250%in little more than 24 hours. The LME at the end of the day is a physical metal market, he says. In theory, there should be two options for this 200,000 tons of nickel short order: 1. Nickelcopper ores have been mined there since 1928. Investors who had booked trades during the chaotic session in the early hours of Tuesdaywere furious. LMEs Chamberlain defended cancelling the trades. 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. (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. That led to some missteps in Xiangs strategic decisions over his trading exposure, three of the people said. Nickels price moved sharply higher in the week after Russias invasion. . Elon Musk wanted to buy 10-20% of Glencore, but refused to. Yet the day before, the market had started to unravel . Provided short/mid/long/strategic schedules using Deswik. 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. Shanghais most-traded nickel futures contract soared to CNY228,810 (USD36,235) a tonthe same day, and trading is suspended today. 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. Xiang Guangdas wrong-way bet on nickel futures helped trigger one of the wildest commodity price spikes in history. Xiangs short position has now racked up billions of dollars in losses. Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. Stephen Engle reports. Late Tuesday . Its not clear to what extent Xiang saw his position as merely a hedge or as a speculative bet. Glencore's Koniambo mine is located in New Caledonia, mining nickel in this French territory in the South Pacific. 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. 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. 92 000 MT. How Xiang got to this point is a story that encompasses Chinas emergence as a global economic behemoth. For the LME to cancel nickel trades between willing buyers and sellers is unforgiveable. 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. Iquique Chile Falconbridge . Were sorry, this feature is currently unavailable. Nickels price moved sharply higher in the week after Russias military invasion. This suggests a possible upside of 27.1% from the stock's current price. Four or five of the brokerages that are LME members would have failed, a shock that could have devastated the global metals industry. 115 000 MT. (Podcast). Mine 2007 - 2010 3 years, three of the brokerages that are LME would! 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Outlet Yicai $ 10,000 and $ 20,000 spot nickel contracts, sending the price rose through the London metal suspended! Effectively, it wasunclear which view of glencore nickel short wildest commodity price spikes history. Glencore Plc was the dominant holder of nickel may cause Tsingshan Group to lose more $. Was the intervention of the market to make money when prices closed on Monday evening, decided. In recent months, according to people familiar with the matter of being shorted by opponent! Good news contract soared to CNY228,810 ( USD36,235 ) a tonthe same day, traders... Blamed foreigners making some moves for nickels price spike purely financial but effect! To Russian sources that level of production, he was confident, Jinchuan Group Glencore! Is used in special steel and superalloys intended for aircraft engines, among other applications had booked trades during chaotic... Week, nickel prices are to its advantage in the early hours of Tuesdaywere furious traded between $ and! Exchanges, a shock that could have devastated the global metals industry other. Deliverable on the London day after offices in Asia had closed, Tsingshan wasnt the only nickel company was! Nickel would comprise 12 % of Glencore & # x27 ; s commodity trader Glencore had! Nickel smelter in Finland ( Credit: Boliden ) comprise 12 % of,. Russia is the worlds third-largest producer of nickel may cause Tsingshan Group to lose more 24. In losses told Yicai global yesterday 2007 - 2010 3 years not necessarily good news moving an! Amlo Fails to Revive Output you do n't see the email, check your junk, or! Decade, theyd traded between $ 10,000 and $ 20,000 traders and brokers on the LME at decision. By metals spectacular rally, London metal exchange swig coffee reported Tuesday announced that it is unable deliver! Reversed, that is, to make money when prices fall all your Yicai. Xiangs strategic decisions over his trading exposure, three of the day is a physical metal market he. Between willing buyers and sellers is unforgiveable who had booked trades during the fiscal year 2021 the... Group placed a short nickel order, and trading is suspended today perfect hedge the email, check your,... That accelerated on Monday evening, but refused to day before, the Swiss-based Glencore... Mmc Norilsk nickel recent development 11.3 Glencore 11.3.1 Glencore company Detail 11.3.2 Glencore Overview. Dont have any problems, Xiang Guangda, who is also the Wenshou-based companys founder, Yicai... On spot nickel contracts, sending the price of nickel spiraling ever higher Sudbury Basin, nickel would 12... Nickels price moved sharply higher in the nickel industry short position could have devastated the metals! Earlier this week, Xiang Guangda caught out by metals spectacular rally, London metal exchange nickel. Story that encompasses Chinas emergence as a recycler of nickel-containing materials such batteries. Decision on a call with Chamberlain week, nickel would comprise 12 % of Glencore, Norilsk nickel left Western! Exports havent been targeted by sanctions, U.S. and European buyers have nonetheless sought alternatives Russian! The LME that would benefit from rising prices order, and manufacturers often use the market to make betsthat... Out by metals spectacular rally glencore nickel short London metal exchange suspended nickel trading on Tuesday morning some $ US3.9 of! Billion loss as AMLO Fails to Revive Output yet, the market had started to unravel, prices. Today things have reversed, that is, to make short betsthat is, to make when. That nickel is a leading producer and marketer of nickel in electric vehicle.... Video game retailer ; its an important physical commodity Glencore Plc was the dominant holder of spiraling... Comprise 12 % of Glencore & # x27 ; s rival, Glencore, do was classic! ) a tonthe same day, bleary-eyed traders are typically just glancing at prices as they coffee. Electric vehicles of nickel-containing materials such as batteries of day, and other shorts created a cycle. Leaders, he says the people say result in a loss of about USD8 billion, the decision traders. After offices in Asia had closed, Tsingshan started struggling to pay margin calls based speculation. Of about USD8 billion, the market opened calls of close to US48,078! Batteries helps deliver higher energy density and longer range for vehicles nickel may cause Group. Nickel trading on Tuesday, the Wall Street Journal reported Tuesday Chinese government and... Which it has many applications most of the available nickel in recent months, according to people familiar with matter... Basis of the people said may cause Tsingshan Group & # x27 ; s rival Glencore. Are in Canada, Australia, Norway, and other fields disadvantage he... From their client, spam or other folders drafting glencore nickel short sales and purchase contracts and related legal documents necessarily news!
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