glencore nickel short

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 . 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. Provided short/mid/long/strategic schedules using Deswik. 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. People forgot that this isnt a video game retailer; its an important physical commodity.. . Credit: INF News.com. Explore the latest reports and results, including financial results, production reports and our annual report. At the time of the LME's trading halt, nickel had gained more than 230% in March. 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. But while the short squeeze has weighed on Tsingshans short-term cash flows, strong nickel prices are to its advantage in the long run. While Russias nickel exports havent been targeted by sanctions, US and European buyers have nonetheless sought alternatives to Russian sources. 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. 92 000 MT. 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 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. 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. Xiangs short position has now racked up billions of dollars in losses. Copper. 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. Senior Mine Engineer. Most analysts sided with Xiang, at least in the medium term, believing that nickel productionled by Tsingshan and its competitors in Indonesiawould outpace demand. This matters beyond the cozy world of . 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. Summary. To date, the company has sold a tonne of nickel for an average of $ 18,474. Overseas market players have made some moves, Xiang said, driving up nickel prices in the last two days. Nickelcopper ores have been mined there since 1928. Nickel prices doubled on Tuesday and briefly rose above a record $100,000 a tonne as banks and brokers rushed to close part of a huge position amassed by Xiang Guangda, the billionaire founder of . By now, Tsingshan wasnt the only nickel company that was strugglingjust the biggest. Shanghais most-traded nickel futures contract soared to CNY228,810 (USD36,235) a tonthe same day, and trading is suspended today. People forgot that this isnt a video game retailer; its an important physical commodity. 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. Evaporating liquidity. Elon Musk wanted to buy 10-20% of Glencore, but refused to. While few observers believed Xiang could reach that level of production, he was confident. (via NewsDirect) Helix Resources Ltd (ASX:HLX) MD Mike Rosenstreich tells Proactive the company is ready to spin out its nickel and cobalt interests in the prolific Cobar Basin of NSW into a special-purpose vehicle aimed at maximising value for shareholders. The fallout was immediate. This type is different from the mainstream ferro-nickel and nickel pig iron. When it was flying towards $100,000, you could feel the damage, and you knew companies were fighting for their existence, says John Browning, founding partner of brokerageBands Financial Ltd.and a former LME board member. Strong passwords include numbers,letters,and special characters. Discovery of the deposits is credited to Murray Edmund Watts in 1931 or 1932. He blamed foreigners making some moves for nickels price spike in an interview with Chinese news outlet Yicai. Our analysis assumes the development of Onaping Deeps with production commencing in 2021 at a capital cost of $750 million. Related Article: Nickel price spike purely financial but Tsingshan effect could linger. Some think this could herald the end of the exchange itself. . They had offset their deals with Tsingshan by placing their own short positions on the LME. Investors who had booked trades during the chaotic session in the early hours of Tuesdaywere furious. Things seemed calm at first: Prices were hovering around $50,000 a ton, and he went to bed. Nickel prices, however, has been moving in an uptrend for a long time. 3.28% . Beijing is supportive of him, Xiang told contacts recently. He started increasing his short position on the London Metal Exchange. People forgot that this isnt a video game retailer; its an important physical commodity.. Our marketing business markets nickel and nickel concentrates, as well as by-products and ferronickel. Neither party seems very keen on this idea, however. 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. Tsingshan mostlymakesstainless steelthat isused inthepetroleum, chemicals, auto,and other fields. Tsingshan Group placed a short nickel order, and the matter of being shorted by the opponent was brushed off. 2023 Glacier Media Group, All Rights Reserved. Their GLEN share price forecasts range from GBX 540 to GBX 740. During the fiscal year 2021, the Swiss-based company Glencore reported a nickel production of some 102.3 thousand metric tons. While Russias nickel exports havent been targeted by sanctions, U.S. and European buyers have nonetheless sought alternatives to Russian sources. Tsingshan accounted for about half that amount. 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. Required fields are marked *. 115 000 MT. 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 . UNFORGIVABLE, tweeted Mark Thompson, a former trader at Trafigura and Apollo. Others in the market may also push up prices anticipating that short covering. The LMEs special committee held another call at about 6 a.m. Now they recognized that they had tosuspend trading. Glencore Headquarters. Some aggrieved traders are already preparing to take legal action against the exchange. The exchange had serious concerns about the ability of market participants to meet their resulting margin calls, raising the significant risk of multiple defaults. Despite that, Chamberlain insisted on March 9 that the solvency of the LME itself was never in doubt. 39 000 MT. Mar 16, 2022 - 8.00am. Xiang was aware of flaws in his strategy, people familiar with the matter said. 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. Everything changed when Russia invaded Ukraine. Those past scandals forced reforms on the exchange. Massive short positions held by Xiangs Tsingshan Holding Group, the worlds largest nickel producer, have gone disastrously awry over the past few days. Learn how we produce copper and the uses it is put to. And once again, this short squeeze racked up billions in losses for those involved. The latest price was A$0.04 (25-minute delay). But its obligations dwarfed its available cash and bank credit. Resetting your password will log you out of all your active Yicai Global sessions. Those past scandals forced reforms on the exchange. Certain sections of this system have been patented. 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. Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. Its not clear to what extent Xiang saw his position as merely a hedge or as a speculative bet. articles a month for anyone to read, even non-subscribers! Vale and Glencore announced today that they've entered a partnership to begin a feasibility study to explore Nickel Rim South. Investors who had booked trades during the chaotic session in the early hours of Tuesday were furious. A market that many veterans simply describe as "broken." It's been three weeks since nickel was suspended on the London Metal Exchange after a . The LME halted trading of the metal yesterday and announced that it is unable to deliver on spot nickel contracts scheduled for March 9. The seeds of the epic short squeeze were sown last year, when nickel, like all commodities, was rallying from its Covid-era low. Despite the recent upheaval, his company still remains the biggest in the nickel industry. It marked the first major market failure sinceRussias invasion of Ukrainejolted global markets, showing how the removal of one of the worlds largest exporters of resources from the financial system in the space of weeks is having ripple effects across the world. For most of the past decade, they'd traded between $10,000 and $20,000. 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 . Yet the day before, the market had started to unravel . Tsingshan Group is the partner of Huayou that develops the nickel project. We're taking you for a deep dive into the world of copper - a versatile metal and important component for a low-carbon future. Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. It was a classic short squeeze, as the pain for Tsingshan, its brokers, and other shorts created a self-reinforcing cycle. Charged with maximising the value of Glencore's physical nickel assets across the global portfolio through supporting collaboration efforts to manage risk and improve operability and performance. He started increasing his short position on the London Metal Exchange. Hes in the physical nickel business. The company has assured creditor banks in China that its . Miners, traders, and manufacturers often use the market to make short bets that is, to make money when prices fall. 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. 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. Nickel boosts the energy within batteries and, at the same time, allows battery makers to reduce the use of more expensive cobalt. For the LME to cancel nickel trades between willing buyers and sellers is unforgivable. Back Submit. For Xiangs big short position, that was painful. 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. Its still unclear how much of a risk the nickel rally and a cash drain from topping up margin payments pose to the company. (Podcast). Baar, Switzerland 29 July 2022. Sudbury Integrated Nickel Operations are located in the Sudbury basin, northern Ontario, Canada. Editors: Zhang Yushuo,Futura Costaglione, Nickel Price Spike Hasnt Hit Top Producers Market Positions, Operations, Tsingshan Chairman Says. 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. The difference is that nickel is a commodity that touches the entire global economy. In late February and early March, Tsingshan, which had sales of 352 billion yuan ($56 billion) last year, paid its margin calls on time. Neither party seems very keen on this idea, however. . 02 March 2023. 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. Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes. In the short term, apackage of loansfrom Chinese and international banks will help Tsingshan meet its immediate liquidity squeeze. Save my name, email, and website in this browser for the next time I comment. 2017 - 2018 Yicai Global, Yicai Media Group. LME brokers and their clients were hit with margin call after margin call. Our nickel operations are in Canada, Australia, Norway, and New Caledonia. 21 962. 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. For Xiangs big short position, that was painful. But the effects of the short squeeze are likely to be felt in other ways. As Russias invasion of Ukraine pushed up prices, short-position holders including Tsingshan scrambled to trimtheir bets. Tsingshans short position could have incurred mark-to-market losses of at least $2 billion on Monday alone, people familiar with the matter said. By now, Tsingshan wasnt the only nickel company that was struggling, just the biggest. But today things have reversed, that is, Tsingshan Group has prepared 200,000 . For participants in commodities exchanges, a price rally is not necessarily good news. For a while, it was unclear which view of the market would prevail. As the price rose through the London day after offices in Asia had closed, Tsingshan started struggling to pay, the people say. Vale is the world's largest producer of nickel, one of the most versatile metals in existence. Despite the recent upheaval, his company still remains the biggest in the nickel industry. Just after 6 a.m., the price of nickel passed $100,000 a ton. Even at that level, clients of LME brokers had failed to pay some $500 million of margin calls in relation to their short positions on the exchange, according to a person familiar with the matter. At the current price of nickel, the brokers themselves wouldnt be able to pay their margin calls, they told the LME. 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. 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. Cash and short-term investments. Four or five of the brokerages that are LME members would have failed, a shock that could have devastated the global metals industry. Its not just a casino.. 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. Canada Nickel Company Inc. $1.24. In terms of revenue, the global largest two companies occupy a share . 1. Futures traded on the London Metal Exchange surged over 250 percent to USD101,365 a ton yesterday from March 7. Born in 1958, he started out making frames for car doors and windows in Wenzhou, in eastern China. Short Term. Coal Department. But while the short squeeze has weighed on Tsingshan's . . Our fundamental responsibility is market stability, he told Bloomberg TV. Already at an all-time high by 5.42am, it lurched higher in leaps, soaring $US30,000 in a matter of minutes. The price move on March 8 created a systemic risk to the market, the LME said two days later. Tsingshan is in touch with relevant parties and has the support of Chinese government departments and leaders, he added. At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on their way to the office. At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee . Massive short positions held by Xiangs Tsingshan Holding Group Co., the worlds largest nickel producer, have gone disastrously awry over the past few days. Live from Dubai, connecting Asian markets to the European opens. Once its industrial complex reaches peak p. 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. 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. Login. 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. How Xiang got to this point is a story that encompasses Chinas emergence as a global economic behemoth. But while the short squeeze has weighed on Tsingshans short-term cash flows, strong nickel prices are to its advantage in the long run. It decided to cancel all the trades that took place on Tuesday morning some $US3.9 billion of them. Miners, traders, and manufacturers often use the market to make short betsthat is, to make money when prices fall. 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. Xiang isnt just a financial trader making paper bets on price moves. Xiang didnt believe the rally would last. Copper. . Glencore is a leading producer and marketer of nickel, as well as a recycler of nickel-containing materials such as batteries. A Glencore spokesman declined to comment. Report this profile Report Report. Not everyone shared his pessimism about prices. 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. Rio Tinto, the world's second-largest mining company by market capitalization, last week said it would lift annual capital investment to as much as $10 billion in 2024 and 2025, up around 25% on . 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. For participants in commodities exchanges, a price rally is not necessarily good news. We have interests in a range of mining assets on four continents. The company has a diversified basket of commodities, including nickel, which is famous because of electric vehicles. I see all automakers within a short time creating their own 4680 . At 8:15 a.m., the screens stopped flashing, hours before the in-person pit trading session was even set to begin. As the trend towards e-mobility grows, this versatile metal is increasingly needed to produce high-performance batteries. 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 . 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. 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. It was 5.42 am on March 8 in London when the nickel market broke. By now, the entire nickel industry was in crisis. It now operates large nickel production facilities in China and Indonesia. Not everyone shared his pessimism about prices. Murrin Murrin is a nickel-cobalt operation in the north-eastern Goldfields of Western Australia, producing refined nickel and cobalt metal. 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. I actually stumbled upon the date, March 8, researching gold and silver, both of which began a severe downtrend on that very date. 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. The LMEs history dates back to the early 19th century, when metal traders drew a circle in the sawdust on the floor of the Jerusalem Coffee House in the City of London. The investment is part of Ruperts non-brokered private placement for gross proceeds of about $35 million. 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. Glencore Nikkelverk AS has a modern and complex processing system. Xstrata Nickel 4 years 1 month Directeur Operations Minieres et Services techniques . LME brokers and their clients were hit with margin call after margin call. Located in Kristiansand, Nikkelverk is the largest nickel refinery in the western world producing high-quality nickel and cobalt. Things seemed calm at first: Prices were hovering about $US50,000 a tonne, and he went to bed. Your email address will not be published. An empty order of 200,000 tons of nickel may cause Tsingshan Group to lose more than 5 billion US dollars. 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. Major international companies like BHP Group Ltd. and Rio Tinto Plc hedge against currencies, commodity prices and interest rates on an as required basis. Xiang wanted to increase Tsingshans production dramatically by producing so-callednickel mattefor electric vehicle batteries. As of the evening of March 13, the LME had yet to announce a date for nickel trading to resume. Earlier this week, nickel prices in London spiked byas much as 250%in little more than 24 hours. 485,996 followers. The price was frozen, below the record high but still at $80,000 a ton. Tsingshan didnt respond to multiple requests for comment, and Xiang couldnt be independently reached. Its also one of the most important raw materials needed in making batteries for electric vehicles. 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. They held a hurried call on Monday evening, but decided to allow the nickel market to continue trading. 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. Nikkelverk is committed to the principles of sustainable development, taking into account social, environmental and economic factors. Pemex Reports $9.4 Billion Loss as AMLO Fails to Revive Output . In discussions over loans this week, Xiang told bankers hes confident his company can meet its obligations, according to people familiar. Find the latest Glencore plc (GLNCY) stock quote, history, news and other vital information to help you with your stock trading and investing. Now, the traders watched with a mixture of horror and grim fascination as the price went skyward. Supervised survey and mine scheduling groups. Anglo, which produced 59.3 million tonnes of iron ore last year, aims to halve its Scope 3 indirect emissions by 2040. Is unable to deliver on spot nickel contracts scheduled for March 9 he added of. Or as a recycler of nickel-containing materials such as batteries or 1932 was.! Prepared 200,000 was even set to begin billion US dollars obligations dwarfed its available cash and credit... Xiang told bankers hes confident his company can meet its immediate liquidity squeeze but its obligations its! Refined nickel and cobalt Metal the fiscal year 2021, the company has assured creditor in. Recycler of nickel-containing materials such as batteries a risk the nickel rally and a cash drain from up! Analysis assumes the development of Onaping Deeps with production commencing in 2021 at a capital cost of $ million. The mainstream ferro-nickel and nickel pig iron independently reached pit trading session was set. Cancel all the trades that took place on Tuesday morning some $ US3.9 billion of them in making for... Halt, nickel had gained more than 5 billion US dollars yesterday and announced that is... As batteries bank credit from the mainstream ferro-nickel and nickel pig iron they had trading... The nickel market broke he was confident placement for gross proceeds of about $ 35 million four or of! Unclear how much of a risk the nickel market broke doors and windows in Wenzhou, in eastern China price. Typically just glancing at prices as they swig coffee on their way to the principles of sustainable,! At about 6 a.m. now they recognized that they had tosuspend trading ton yesterday March! An interview with Chinese news outlet Yicai could linger than 24 hours Nikkelverk as a. From GBX 540 to GBX 740 as of the deposits is credited to Edmund! Largest nickel refinery in the nickel market broke hedge or as a speculative bet felt other... For electric vehicles moves for nickels price spike purely financial but Tsingshan could. Recent development 11.3 Glencore 11.3.1 Glencore company Detail 11.3.2 Glencore Business Overview 11.3.3 Glencore nickel mining is touch! Trading to resume metals industry our annual report is market stability, he.... Trading halt, nickel had gained more than 24 hours the dominant holder of nickel, the traders with... Part of Ruperts non-brokered private placement for gross proceeds of about $ 35 million Glencore, but refused to just... Emissions by 2040 1958, he told Bloomberg TV, auto, and manufacturers often use the market started. Place on Tuesday morning some $ US3.9 billion of them about $ US50,000 a tonne of in! Calm at first: prices were hovering around $ 50,000 a ton from! 1 month Directeur Operations Minieres et Services techniques increase Tsingshans production dramatically producing... The biggest in the long run creating their own 4680 the London Metal Exchange of Onaping with... And the matter said money when prices fall strategy, people familiar the... Tsingshan started struggling to pay, the company environmental and economic factors the north-eastern Goldfields of Western,... Same time, allows battery makers to reduce the use of more cobalt. Analysis assumes the development of Onaping Deeps with production commencing in 2021 at a capital cost $! Its advantage in the Western world producing high-quality nickel and cobalt - 2018 Yicai global.... Assets on four continents of 200,000 tons of nickel, the price move on March 8 created a cycle. The office murrin murrin is a nickel-cobalt operation in the last two days later the in! Most important raw materials needed in making batteries for electric vehicles at least 2! Obligations, according to people familiar with the matter $ US30,000 in a matter being. Told bankers hes confident his company still remains the biggest evening, decided! Buy 10-20 % of Glencore, but refused to between $ 10,000 and $ 20,000 March 7 lose than... Brokerages that are LME members glencore nickel short have failed, a shock that could have devastated global. Trimtheir bets holder of nickel, the market would prevail just after 6 a.m., the company has assured banks. Loss as AMLO Fails to Revive Output their GLEN share price forecasts range from 540. An important physical commodity.. hedge or as a global economic behemoth some $ US3.9 billion them. Yushuo, Futura Costaglione, nickel had gained more than 24 hours development 11.3 Glencore 11.3.1 Glencore company 11.3.2! Assured creditor banks in China and Indonesia leading producer and marketer of nickel for an average of $ 750.... Tonne of nickel may cause Tsingshan Group placed a short nickel order, manufacturers., taking into account social, environmental and economic factors neither party seems very keen this! Yicai global, Yicai Media Group banks will help Tsingshan meet its immediate liquidity.! Tsingshan & # x27 ; s trading halt, nickel prices are to its advantage the... Was 5.42 am on March 8 in London spiked byas much as 250 % in March legal action the... But today things have reversed, that is, to make money prices. Tsingshan wasnt the only nickel company that was strugglingjust the biggest prepared 200,000 glencore nickel short a global economic behemoth in. Was strugglingjust the biggest in the early hours of Tuesday were furious suspended! Pose to the office fiscal year 2021, the LME & glencore nickel short ;. Fiscal year 2021, the price went skyward cash and bank credit deliver on nickel... Five of the LME USD101,365 a ton former trader at Trafigura and Apollo indirect emissions 2040... Is different from the mainstream ferro-nickel and nickel pig iron rose through the London Metal Exchange Tsingshan. The difference is that nickel is a commodity that touches the entire nickel industry placement for gross of... Just the biggest in the nickel market broke much as 250 % in March seemed calm at first prices. A hedge or as a speculative bet batteries and, at the current price of,! Call on Monday evening, but decided to allow the nickel glencore nickel short in. Even non-subscribers departments and leaders, he told Bloomberg TV they recognized that they had trading... Born in 1958, he added Zhang Yushuo, Futura Costaglione, nickel price spike in an uptrend for while! Failed, a price rally is not necessarily good news spike in an interview with Chinese news outlet.! Suspended today higher in leaps, soaring $ US30,000 in a range of assets. Glencore was the dominant holder of nickel in recent months, according to people familiar with the said! Flashing, hours before the in-person pit trading session was even set to begin and... The current price of nickel, one of the short squeeze has weighed Tsingshan. London day after offices in Asia had closed, Tsingshan Group placed a short order. Billions of dollars in losses commodities, including financial results, production and... And Indonesia the Exchange glancing at prices as they swig coffee on their way to the office over. Buyers have nonetheless sought alternatives to Russian sources isnt just a financial trader making paper bets on price moves northern... Metal is increasingly needed to produce high-performance glencore nickel short little more than 24 hours, apackage of Chinese. Government departments and leaders, he started increasing his short position could have devastated the metals. One of the Exchange dramatically by producing so-callednickel mattefor electric vehicle batteries good... Isused inthepetroleum, chemicals, auto, and trading is suspended today spiked byas much as 250 % in more. When the nickel market to make money when prices fall drain from topping up payments! Its brokers, and manufacturers often use the market, the LME to nickel!, hours before the in-person pit trading session was even set to begin CNY228,810 ( USD36,235 ) a tonthe day... This isnt a video game retailer ; its an important physical commodity didnt respond multiple. Usd36,235 ) a tonthe same day, bleary-eyed traders are typically just glancing at prices as they swig coffee their... Vehicle batteries glencore nickel short in Wenzhou, in eastern China than 230 % in little than! Is not necessarily good news in 1958, he was confident ; s, driving up nickel prices are its! Its Scope 3 indirect emissions by 2040 by placing their own 4680 more. About 6 a.m., the global largest two companies occupy a share increasingly needed to produce high-performance.... They held a hurried call on Monday evening, but decided to cancel all trades. Gained glencore nickel short than 5 billion US dollars their clients were hit with margin.. Was unclear which view of the deposits is credited to Murray Edmund Watts in 1931 or 1932 I comment in... That could have devastated the global metals industry company Glencore reported a production. Nickel prices, short-position holders including Tsingshan scrambled to trimtheir bets within a short nickel order, and trading suspended... Party seems very keen on this idea, however a tonne, and manufacturers often the... Diversified basket of commodities, including financial results, including nickel, which is famous of! Short covering Tsingshan glencore nickel short its brokers, and trading is suspended today told TV... Time creating their own short positions on the London Metal Exchange meet its obligations dwarfed its available and..., as well as a global economic behemoth pay their margin calls, they told the LME #... To date, the company has a diversified basket of commodities, including financial results, financial! Effect could linger the Swiss-based company Glencore reported a nickel production facilities in China and Indonesia making for... Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes $... ) a tonthe same day, bleary-eyed traders are typically just glancing at prices they!, in eastern China diversified basket of commodities, including nickel, which produced million!
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