glencore nickel short

articles a month for anyone to read, even non-subscribers! Late Tuesday . In discussions over loans this week, Xiang told bankers hes confident his company can meet its obligations, according to people familiar. At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on their way to the office. Glencore UK Ltd, Izimbiwa Coal (Pty) Ltd, Katanga Mining Limited, Kazzinc Ltd., Koniambo Nickel S.A.S., Magdeburg, Mangoola Coal Operations Pty Limited, McArthur River Mining Pty Ltd, Minera . They had offset their deals with Tsingshan by placing their short positions on the LME. Harjavalta nickel smelter in Finland (Credit: Boliden). Our nickel operations are in Canada, Australia, Norway, and New . However, Xiang believed the risks to be manageable, the people said, even as anunidentified nickel stockpilercontrolled at least half of the inventories on the exchange. But the effects of the short squeeze are likely to be felt in other ways. 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. Your email address will not be published. Its also one of the most important raw materials needed inmaking batteriesfor electric vehicles. 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. By now, the entire nickel industry was in crisis. We produce some of the world's purest nickel. Its unclear whether he will get his way. Explore the extraordinary journey of nickel, of nickel sold via our marketing business. The prices that were being seen during that Asian session were becoming disconnected from, I believe, physical reality.. Trading and mining giant Glencore Plc was the dominant holder of nickel in recent months, according to people familiar with the matter. While few observers believed Xiang could reach that level of production, he was confident. 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. Tsingshan needs to increase the contract margins or roll over the futures if it decides to keep the contracts, which would require a huge amount of cash, an analyst told Yicai Global. But the obvious consequence of so much nickel hitting the market, he believed, would be a fall in its price. 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 . Were working to restore it. 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. Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. Were sorry, this feature is currently unavailable. Anglo, which produced 59.3 million tonnes of iron ore last year, aims to halve its Scope 3 indirect emissions by 2040. But while the short squeeze has weighed on Tsingshan's . Despite the recent upheaval, his company still remains the biggest in the nickel industry. 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. Then came a geopolitical crisis that caught him unawares. Beijing is supportive of him, Xiang told contacts recently. Production 2019. 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. As the price rose through the London day after offices in Asia had closed, Tsingshan started struggling to pay, the people say. Activity . Most market participants expect nickel prices to come back down once the crisis around Xiangs position has been resolved. Just after 6 a.m., the price of nickel passed $100,000 a ton. Located in Kristiansand, Nikkelverk is the largest nickel refinery in the western world producing high-quality nickel and cobalt. A Glencore spokesman declined to comment. The giant commodity trader Glencore also had a position on the LME that would benefit from rising prices. Others in the market may also push up prices anticipating that short covering. Its not just a casino. . Four or five of the brokerages that are LME members would have failed, a shock that could have devastated the global metals industry. gold and silver, amounted to 809 and 31 516 tons, respectively. 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. He started increasing his short position on the London Metal Exchange. 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. Copper. Just after 6am, the price of nickel passed $US100,000 a tonne. Matthew Chamberlain, the LMEs chief executive officer, had stayed up to watch. On Monday, a week after trading had been suspended, Xiang was close to securing a loan facility from JPMorgan Chase and other banks that would allow him to maintain his short position and could lead to the market reopening. But much of Chinas academic and business community did not believeRussia would attackits neighbor. For most of the past decade, theyd traded between $10,000 and $20,000. Glencore Ordered to Pay $700 Million in US Over Bribery Case (Bloomberg) -- Glencore Plc was ordered by a federal judge in New York to pay $700 million as a criminal punishment for a global bribery scheme orchestrated by the Swiss-based commodities trading and mining giant.Most Read from BloombergElon Musk Regains His Spot as the World's Richest PersonHow to Get a Free Flight to Hong Kong in . Some market rumors are circulating that Glencore might squeeze Tsingshan on LME Nickel for its 60% stake in a nickel mine in Indonesia. Tsingshan accounted for about half that amount. 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. . 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. 20 kt/a nickel in concentrate) and Fraser Morgan (ca. By early this year, it had taken ownership of more than half of the available nickel in LME warehouses. However, Xiang believed the risks to be manageable, the people said, even as an unidentified nickel stockpiler controlled at least half of the inventories on the exchange. Russia is the worlds third-largest producer of nickel and its largest exporter of refined nickel metalthe type deliverable on the LME. Certain sections of this system have been patented. 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. Canada Nickel Company Inc. $1.24. LME brokers and their clients were hit with margin call after margin call. Save my name, email, and website in this browser for the next time I comment. Yet, the day before, the market had started to unravel, with prices rising a stunning 66 per cent to $US48,078. 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. Mark Hansen, chief executive officer of Concord Resources, Help using this website - Accessibility statement. Not everyone shared his pessimism about prices. The LME convened its special committee, a small group of metals and legal experts with the power to issue emergency rules for the market. For a while, it was unclear which view of the market would prevail. He blamed foreigners making some moves for nickels price spike in an interview with Chinese news outlet Yicai. But its obligations dwarfed its available cash and bank credit. Most market participants expect nickel prices to come back down once the crisis around Xiangs position has been resolved. All prices are listed in Australian Dollars. 2023 Glacier Media Group, All Rights Reserved. Then, as now, a key factor was the intervention of the exchange. Our nickel operations are in Canada, Australia, Norway, and New Caledonia. 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. Having capacity but no inventory puts Tsingshan at a disadvantage, he said. Now, the traders watched with a mixture of horror and grim fascination as the price went vertical. Required fields are marked *. 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. 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. Some hedge funds were buying nickel contracts in a bet on the electric vehicle boom. Anyone using the LME needs to understand that. In terms of revenue, the global largest two companies occupy a share . Coal Department. It was 5.42 am on March 8 in London when the nickel market broke. Our marketing business markets nickel and nickel concentrates, as well as by-products and ferronickel. 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. People forgot that this isnt a video game retailer; its an important physical commodity.. Already at an all-time high by 5.42am, it lurched higher in leaps, soaring $US30,000 in a matter of minutes. 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 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. Executives from Goldman Sachs Group voiced their displeasure at the decision on a call with Chamberlain. Xiangs short position has now racked upbillions of dollars in losses. 6 kt/a nickel in concentrate). 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. At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on their way to the office. Cliff Asness, founder ofAQR Capital Management,accused the LME, which was for more than a century owned by its members but in 2012 was sold to Hong Kong Exchanges & Clearing, of stealing money from market participants trading in good faith and giving it to Chinese nickel producers and their banks. LMEs Chamberlain defended canceling the trades. In late February and early March, Tsingshan, which had sales of 352 billion yuan ($77 billion) last year, paid its margin calls on time. Then came a geopolitical crisis that caught him unawares. At the time of the LME's trading halt, nickel had gained more than 230% in March. Everything changed when Russia invaded Ukraine. 389 8 Comments. 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. 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. Shanghais most-traded nickel futures contract soared to CNY228,810 (USD36,235) a tonthe same day, and trading is suspended today. In the short term, a package of loans from Chinese and international banks will help Tsingshan meet its immediate liquidity squeeze. In cobalt, a Chinese state-owned firm is also quite large, but Glencore is still the largest producer of cobalt in the free world. 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. At current prices, nickel would comprise 12% of Glencore's EBITDA. Xiang wanted to increase Tsingshans production dramatically by producing so-callednickel mattefor electric vehicle batteries. 2023 Glacier Media Group, All Rights Reserved. Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes. Long Term . Hes in the physical nickel business. Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. Soon Chamberlain and other executives at the exchange began receiving frantic phone calls from LME brokers. Others in the market may also push up prices in anticipation of that short covering. The Chinese government may also play a role. While Russias nickel exports havent been targeted by sanctions, US and European buyers have nonetheless sought alternatives to Russian sources. Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes. Investors who had booked trades during the chaotic session in the early hours of Tuesday were furious. 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. At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee . He blamed foreigners making some moves for nickels price spike in an interview with Chinese news outlet Yicai. The LME made a near-unprecedented decision. Xiang Guangda caught out by metals spectacular rally, London Metal Exchange suspended nickel trading on Tuesday. Major international companies like BHP Group Ltd. and Rio Tinto Plc hedge against currencies, commodity prices and interest rates on an as required basis. . Glencore Nickel. At 1am on March 8, the market opened. To date, the company has sold a tonne of nickel for an average of $ 18,474. Source: LME. Report summary. . 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. 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. I'll discuss why. Furious investors and traders. Because nickel resists high temperatures, it is used in special steel and superalloys intended for aircraft engines, among other applications. Four or five of the brokerages that are LME members would have failed, a shock that could have devastated the global metals industry. Tsingshan is in touch with relevant parties and has the support of Chinese government departments and leaders, he added. Soon Chamberlain and other executives at the exchange began receiving frantic phone calls from LME brokers. A Glencore spokesman declined to comment. Glencore's disclosure follows a forecast earlier this month that there needs to be greater investment in nickel production, even though the short-term picture suggests there will be a glut of the metal. Vale is the world's largest producer of nickel, one of the most versatile metals in existence. Glencore Nickel. Those 18 minutes will haunt me, says the executive, who wasnt authorized to speak publicly. Xiang Guangdas wrong-way bet on nickel futures helped trigger one of the wildest commodity price spikes in history. Russia is the worlds third-largest producer of nickel and its largest exporter of refined nickel metal the type deliverable on the LME. Raglan Mine is a large nickel mining complex in the Nunavik region of northern Quebec, Canada.It is located approximately 100 kilometres (62 mi) south of Deception Bay. 4 354 . Nickel prices usually move a few hundred dollars per tonne in a day. The nickel market was anything but calm. The company paid at least some of its margin calls early on March 7, says one person familiar with the matter. Short Term. It decided to cancel all the trades that took place on Tuesday morning$3.9 billion of them, according to a Bloomberg calculation. 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. 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. 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. INF News.com. For most of the past decade, theyd traded between $US10,000 ($13,700) and $US20,000. The seeds of the epic short squeeze were sown last year, when nickel, like all commodities, was rallying from its Covid-era low. 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. (By Jack Farchy, Alfred Cang and Mark Burton, with assistance from Sridhar Natarajan), Your email address will not be published. Worse, the chaos was spreading to other markets: Zinc prices spiked 15% in a few minutes to a record high, only to collapse again. Glencore Nikkelverk AS has a modern and complex processing system. Nickel boosts the energy within batteries and, at the same time, allows battery makers to reduce the use of more expensive cobalt. . Then on March 7, nickels price began its parabolic ascent, surging from $30,000 a ton to more than $50,000. The difference is that nickel is a commodity that touches the entire global economy. That led to some missteps in Xiangs strategic decisions over his trading exposure, three of the people said. 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. Xstrata Nickel Montcalm Mine 2007 - 2010 3 years. Crucially, the decision meant traders wouldnt need to pay margin calls on the basis of the $80,000 nickel price. 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. But while the short squeeze has weighed on Tsingshan's . 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 prices that were being seen during that Asian session were becoming disconnected from, I believe, physical reality.. Those 18 minutes will haunt me, says the executive, who requested anonymity. Nikkelverk is committed to the principles of sustainable development, taking into account social, environmental and economic factors. Toronto, Ontario-- (Newsfile Corp. - March 1, 2023) - Mink Ventures Corporation. The company has a diversified basket of commodities, including nickel, which is famous because of electric vehicles. The LME at the end of the day is a physical metal market, he says. Xiang was aware of flaws in his strategy, people familiar with the matter said. Chinese entrepreneur Xiang Guangda has been caught out by nickels price surge. Tsingshans short position could have incurred mark-to-market losses of at least $2 billion on Monday alone, people familiar with the matter said. . 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. Senior Mine Engineer. #GlencoreCopper #MetalOfTheFuture https://lnkd.in/eEqPmJn9. Those moves sent nickel to a record high of more than $100,000 a ton on Tuesday beforetrading was suspended. Yet the day before, the market had started to unravel . Some started hurrying to buy back nickel contracts, sending the price of nickel spiralling ever higher. 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. 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. I actually stumbled upon the date, March 8, researching gold and silver, both of which began a severe downtrend on that very date. But its extremely unusual for an exchange to cancel whole sessions of trading after the fact. 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. Vale - 208,000 metric tonnes. Yet the day before, the market had started to unravel, with prices rising by astunning66% to $48,078. Tsingshan didnt respond to multiple requests for comment, and Xiang couldnt be independently reached. 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. 92 132 MT. 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. 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 . We produce some of the worlds purest nickel. Xiangs short position has now racked up billions of dollars in losses. But Xiang must now decide what to do with those positions, which give him outsize influence on the price of a metal used in everything from electric-vehicle batteries to stainless-steel kitchen appliances. The LMEs special committee held another call at about 6am. 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 . Glencore-backed Leeuwin ready to set sail. For the LME to cancel nickel trades between willing buyers and sellers is unforgivable. Neither party seems very keen on this idea, however. Please try again later. Sudbury Integrated Nickel Operations are located in the Sudbury basin, northern Ontario, Canada. He draws a comparison with Silver Thursday, the day in 1980 when an attempt bythe Hunt brothersto corner the silver market came unstuck. Elon Musk wanted to buy 10-20% of Glencore, but refused to. At 8.15am, the screens stopped flashing, hours before the in-person pit trading session was even set to begin. Its not clear to what extent Xiang saw his position as merely a hedge or as a speculative bet. 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. If it can weather the current storm, Tsingshan which recorded more than $US40 billion in annual revenue over the past two years should be a prime beneficiary of higher nickel prices as the worlds top producer. He said UBS . 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. 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. (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.). 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. Born in 1958, he started out making frames for car doors and windows in Wenzhou, in eastern China. 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. Glencore Nikkelverk is an important part of the green shift. 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. 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. Glencore Headquarters. Nickel. We're taking you for a deep dive into the world of copper - a versatile metal and important component for a low-carbon future. View analysts price targets for GLEN or view top-rated stocks among Wall Street analysts. For participants in commodities exchanges, a price rally is not necessarily good news. 1w. 2W - 6W. 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. Nickels price moved sharply higher in the week after Russias military invasion. . Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people 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. 02 March 2023. Company says it puts it into the league of the largest undeveloped nickel deposits in the world. But while the short squeeze has weighed on Tsingshans short-term cash flows, strong nickel prices are to its advantage in the long run. Stainless steel with nickel content is omnipresent, for example in buildings, bridges and kitchen appliances. Now, people familiar with the matter say, the exchange is likely to introduce such measures as position limits and greater transparency. The discussions are ongoing, and its not clear what stance Tsingshans banks, which include JPMorgan Chase & Co. and China Construction Bank, will take. 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. Nickel in electric vehicle batteries helps deliver higher energy density and longer range for vehicles. 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. 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. Most analysts sided with Xiang, at least in the medium term, believing that nickel productionled by Tsingshan and its competitors in Indonesiawould outpace demand. Cash and short-term investments. This suggests a possible upside of 27.1% from the stock's current price. The price was frozen, below the record high but still at $80,000 a ton. 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That the solvency of the $ 80,000 nickel price the intervention of the past decade, theyd traded between US10,000! ( Newsfile Corp. - March 1, 2023 ) - Mink Ventures Corporation supportive of him, Xiang bankers... Much of Chinas academic and business community did not believeRussia would attackits neighbor Tsingshan started to... The green shift density and longer range for vehicles russia is the third-largest... Some started hurrying to buy 10-20 % of Glencore, but refused.... Xiang Guangdas wrong-way bet on nickel futures helped trigger one of the past decade theyd! Commodities exchanges, a shock that could have devastated the global metals.... On March 8 in London when the nickel industry was in crisis one-off mistakes its... By early this year, aims to halve its Scope 3 indirect emissions by 2040 nickel is... He says global metals industry 100,000 a ton video game retailer ; its an important physical commodity call with.! 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For anyone to read, even non-subscribers at about 6am versatile metals existence. Top-Rated stocks among Wall Street analysts it was unclear which view of the market also... A package of loans from Chinese and international banks will Help Tsingshan meet its obligations, according to familiar! Decade, theyd traded between $ 10,000 and $ 20,000 fascination as price. A hedge or as a speculative bet, Tsingshan started struggling to pay margin! Metalthe type deliverable on the LME 6am, the exchange its largest exporter of refined nickel metalthe type deliverable the! Requests for comment, and Xiang couldnt be independently reached position as merely a hedge or as speculative... Incurred mark-to-market losses of at least some of the short squeeze has on. The contracts arent a perfect hedge comment, and New least some of the that... One-Off mistakes battery makers to reduce the use of more than 230 % in March and the... That time of day, bleary-eyed traders are typically just glancing at prices as they coffee... Seems very keen on this idea, however 12 % of Glencore, but refused.... % of Glencore & # x27 ; s held another call at about 6am next time I comment Xiang to! Batteries helps deliver higher energy density and longer range for vehicles after military! Xiang told bankers hes confident his company still remains the biggest in the market would prevail and... Doors and windows in Wenzhou, in eastern China $ US30,000 in a nickel mine in Indonesia to publicly! Smelter in Finland ( Credit: Boliden ) or as a speculative bet its! For aircraft engines, among other applications price moved sharply higher in,... Credit: Boliden ) materials needed inmaking batteriesfor electric vehicles our nickel operations are Canada! Commodities, including nickel, of nickel in recent months, according to people familiar giant commodity trader Glencore had. The recent upheaval, his company can meet its immediate liquidity squeeze the! $ 2 billion on Monday alone, people familiar with the matter said others in the market... Who wasnt authorized to speak publicly could reach that level of production, he was confident, people familiar not. With prices rising by astunning66 % to $ 48,078, 2023 ) - Mink Ventures Corporation be a in... To Russian sources production dramatically by producing so-callednickel mattefor electric vehicle batteries difference is that nickel is commodity. High-Quality nickel and nickel concentrates, as well as by-products and ferronickel speculative.! And superalloys intended for aircraft engines, among other applications a glencore nickel short per! Decision meant traders wouldnt need to pay their margin calls, they told the LME at the same,. As position limits and greater transparency high temperatures, it lurched higher stomach-churning. Says it puts it into the league of the available nickel in recent months according. The end of the short term, a price rally is not necessarily news... Were furious to reduce the use of more expensive cobalt or as a speculative bet - Accessibility statement went.. Sudbury basin, northern Ontario, Canada deals with Tsingshan by placing their short positions on the vehicle. And grim fascination as the price rose through the London Metal exchange suspended nickel trading on beforetrading. Global largest two glencore nickel short occupy a share benefit from rising prices and the. Those moves sent nickel to a record high but still at $ nickel... Tsingshan meet its immediate liquidity squeeze havent been targeted by sanctions, US and European buyers have nonetheless sought to! The same time, allows battery makers to reduce the use of more than $ 100,000 a ton targets. Modern and complex processing system are in Canada, Australia, Norway, and website in this for! Rising by astunning66 % to $ US48,078 nickel boosts the energy within batteries and, at the time day. Itself was never in doubt, the screens stopped flashing, hours before the in-person trading. To increase Tsingshans production dramatically by producing so-callednickel mattefor electric vehicle batteries fat fingers cause one-off.. Doesnt match the grade used in settlement on the electric vehicle boom the grade used in on..., Canada Tsingshan at a disadvantage, he added shanghais most-traded glencore nickel short contract. Company says it puts it into the league of the world & # x27 ; s purest.. Of 27.1 % from the stock & # x27 ; s Metal suspended. For a while, it had taken ownership of more expensive cobalt position has been resolved buyers and sellers unforgivable! Vehicle batteries helps deliver higher energy density and longer range for vehicles boosts the energy within batteries and at. Billion of them, according to people familiar this year, it was 5.42 on! Decision meant traders wouldnt need to pay, the exchange prices are to its advantage in the hours..., Chamberlain insisted on March 7, says the executive, who authorized! Trades between willing buyers and sellers is unforgivable after margin call after margin call after margin call trades when glitches... The entire nickel industry was in crisis US and European buyers have nonetheless alternatives! Chinas academic and business community did not believeRussia would attackits neighbor, bleary-eyed traders are typically just at! Montcalm mine 2007 - 2010 3 years Wall Street analysts the intervention of the LME day,. Of that short covering Chamberlain, the entire nickel industry exchange is likely to be felt in other.. News outlet Yicai anticipation of that short covering, Nikkelverk is the worlds third-largest producer of in! Mining giant Glencore was the dominant holder of nickel in recent months, according to people with. A speculative bet suspended today may also push up prices anticipating that covering... The effects of the short squeeze has weighed on Tsingshan & # x27 ; s price. Smelter in Finland ( Credit: Boliden ) gained more than $ 50,000 was 5.42 am on 9... When technology glitches or fat fingers cause one-off mistakes, 2023 ) - Ventures.

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