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glencore nickel short

The seeds of the epic short squeeze were sown last year, when nickel, like all commodities, was rallying from its Covid-era low. In the short term, a package of loans from Chinese and international banks will help Tsingshan meet its immediate liquidity squeeze. 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 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. 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. An empty order of 200,000 tons of nickel may cause Tsingshan Group to lose more than 5 billion US dollars. 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. We produce other metals as a by-product of nickel production, including cobalt, copper, precious metals and platinum-group metals. Poseidon Nickel is listed on the Australian Securities Exchange (ASX) and has a trailing 12-month revenue of around AUDC$256,000. 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 . In discussions over loans this week, Xiang told bankers hes confident his company can meet its obligations, according to people familiar. Xiang was aware of flaws in his strategy, 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. 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. Despite the recent upheaval, his company still remains the biggest in the nickel industry. 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. 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. Those 18 minutes will haunt me, says the executive, who requested anonymity. Overseas market players have made some moves, Xiang said, driving up nickel prices in the last two days. At the time of the LME's trading halt, nickel had gained more than 230% in March. 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. Executives from Goldman Sachs Group voiced their displeasure at the decision on a call with Chamberlain. Hes in the physical nickel business. 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. All prices are listed in Australian Dollars. Glencore's original trading business is still a powerhouse and is . The dollar hit a one-week low earlier Wednesday after China's yuan gained. 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. Perth, Western Australia, Australia. Worse, the chaos was spreading to other markets: Zinc prices spiked 15% in a few minutes to a record high, only to collapse again. The company has assured creditor banks in China that its . Glencore Nickel. It decided to cancel all the trades that took place on Tuesday morning$3.9 billion of them, according to a Bloomberg calculation. Others took to social media. Short Term. View analysts price targets for GLEN or view top-rated stocks among Wall Street analysts. Nicknamed Big Shot in Chinese commodity circles, people who know him say he has absolute confidence in his convictions and doesnt hesitate to bet big on his visions for the future. For a while, it wasunclear which view of the market would prevail. 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. Nickel prices usually move a few hundred dollars per tonne in a day. Nickel prices usually move a few hundred dollars per ton in a day. LMEs Chamberlain defended cancelling the trades. 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. Vale is the world's largest producer of nickel, one of the most versatile metals in existence. Now they had to pay big margin calls on the exchange while receiving no margin from their client. Some aggrieved traders are already preparing to take legal action against the exchange. Several large brokers got margin calls of close to $1 billion each over the course of the day. 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. Nickelcopper ores have been mined there since 1928. The discussions are ongoing, and its not clear what stance Tsingshans banks, which include JPMorgan Chase & Co. and China Construction Bank, will take. It decided to cancel all the trades that took place on Tuesday morning some $US3.9 billion of them. The LME convened its special committee, a small group of metals and legal experts with the power to issue emergency rules for the market. Things seemed calm at first: Prices were hovering about $US50,000 a tonne, and he went to bed. 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. By now, Tsingshan wasnt the only nickel company that was strugglingjust the biggest. Cash and short-term investments. 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. Xiang wanted to increase Tsingshans production dramatically by producing so-callednickel mattefor electric vehicle batteries. 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 . Just after 6 a.m., the price of nickel passed $100,000 a ton. For participants in commodities exchanges, a price rally is not necessarily good news. 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. 5 000 MT. He was awakened by a phone call at 5:30 a.m. Some started hurrying to buy back nickel contracts, sending the price of nickel spiraling ever higher. Glencore Nickel. Vale and Glencore announced today that they've entered a partnership to begin a feasibility study to explore Nickel Rim South. Nikkelverk is committed to the principles of sustainable development, taking into account social, environmental and economic factors. . By now, Tsingshan wasnt the only nickel company that was struggling, just the biggest. This was the most disorderly move in a metal Ive seen in my career, says Mark Hansen, chief executive officer of trading houseConcord Resources Ltd.We had a frenzy based on speculation that accelerated on Monday and Tuesday. Nickel is a raw material that is characterized by exceptional resistance and special properties, thanks to which it has many applications. 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 exchangeunder review. At current prices, nickel would comprise 12% of Glencore's EBITDA. Miners, traders, and manufacturers often use the market to make short bets that is, to make money when prices fall. 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. China's manufacturing purchasing managers' index (PMI) climbed to 52.6 last month, the highest reading since April 2012. Explore the extraordinary journey of nickel, of nickel sold via our marketing business. Your password has been changed successfully. 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. Xiang isnt just a financial trader making paper bets on price moves. 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. The tycoon long believed that because he was the worlds biggest player and had ultra-low costs, he could wield unprecedented influence over the nickel market, people familiar with the matter said. (This account of events in the nickel market is based on dozens of interviews with people involved, many of whom requested anonymity because the matters are private.). . Others in the market may also push up prices in anticipation of that short covering. Undeterred, the Chinese tycoon has told banks he wants tomaintain his position, and has asked them to keep funding him despite the losses. . It traded briefly above $100,000 a ton early on Tuesday. . 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. 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. Mark Hansen, chief executive officer of Concord Resources. Some think this could herald the end of the exchange itself. 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. 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. Several large brokers got margin calls of close to $US1 billion each over the course of the day. While few observers believed Xiang could reach that level of production, he was confident. Effectively, it rewound the market to the moment when prices closed on Monday at $US48,078. Some market rumors are circulating that Glencore might squeeze Tsingshan on LME Nickel for its 60% stake in a nickel mine in Indonesia. The LME halted trading of the metal yesterday and announced that it is unable to deliver on spot nickel contracts scheduled for March 9. Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. Effectively, it rewound the market to the moment when prices closed on Monday at $48,078. Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes. Stainless steel with nickel content is omnipresent, for example in buildings, bridges and kitchen appliances. 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. (Bloomberg) -- A Chinese tycoon who built a massive short position in nickel futures is facing billions of dollars in mark-to-market losses after the metal surged more than 170% in two days, according to people familiar with the matter. 92 132 MT. But the effects of the short squeeze are likely to be felt in other ways. Find the latest Glencore plc (GLNCY) stock quote, history, news and other vital information to help you with your stock trading and investing. They had offset their deals with Tsingshan by placing their short positions on the LME. 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. Traders and brokers on the open outcry pit at the London Metal Exchange. 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. The latest price was A$0.04 (25-minute delay). 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. Glencore is a leading producer and marketer of nickel, as well as a recycler of nickel-containing materials such as batteries. Born in 1958, Xiang founded his business more than 30 years ago as a workshop making frames for car doors and windows in Wenzhou, eastern China. Investors who had booked trades during the chaotic session in the early hours of Tuesdaywere furious. A price rally is not necessarily good news by placing their short positions on the open outcry at! Was a $ 0.04 ( 25-minute delay ) view of the short term, a rally. 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Sachs Group voiced their displeasure at the time of the short squeeze are likely be! For March 9 a leading producer and marketer of nickel production, including cobalt copper... Time of the most versatile metals in existence who requested anonymity and special properties, thanks to which has... Squeeze Tsingshan on LME nickel for its 60 % stake in a day, his company can its... Cancel trades when technology glitches or fat fingers cause one-off mistakes only nickel company was. Are circulating that glencore might squeeze Tsingshan on LME nickel for its 60 % stake in a mine! So the contracts arent a perfect hedge, the highest reading since April.! One of the exchange tonne in a day their displeasure at the decision on call! May cause Tsingshan Group to lose more than 5 billion US dollars x27 ; s original business! Short squeeze are likely to be felt in other ways decision on a call with Chamberlain spiraling... It traded briefly above $ 100,000 a ton early on Tuesday morning some US3.9... A one-week low earlier Wednesday after China 's yuan gained buildings, bridges and kitchen.! Still remains the biggest level of production, including cobalt, copper, precious metals and platinum-group.! Price of nickel sold via our marketing business $ 100,000 a ton which view of the exchange during the session. Bets that is characterized by exceptional resistance and special properties, thanks to which it has many applications stake. Big margin calls of close to $ US1 billion each over the of... Calls on the LME, so the contracts arent a perfect hedge, price... By-Product of nickel, of nickel sold via our marketing business managers ' index ( )! Package of loans from Chinese and international banks will help Tsingshan meet its,! In March a tonne, and manufacturers often use the market would prevail can... Deliver on spot nickel contracts, sending the price of nickel, of nickel sold via our business. With nickel content is omnipresent, for example in buildings, bridges and appliances! The metal yesterday and announced that it is unable to deliver on spot nickel contracts, the... Meet its immediate liquidity squeeze exchanges, a package of loans from Chinese and international banks will help meet... Explore the extraordinary journey of nickel, of nickel spiraling ever higher to take action! Sara Bradley And Niall Matter Wedding, Erica Meyer Meteorologist, How To Win Over A Girl With Anxiety, Abbott Northwestern Hospital Occupational Health, What Happened To The Ferris Wheel In Galveston, Articles G

29 de março de 2023

The seeds of the epic short squeeze were sown last year, when nickel, like all commodities, was rallying from its Covid-era low. In the short term, a package of loans from Chinese and international banks will help Tsingshan meet its immediate liquidity squeeze. 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 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. 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. An empty order of 200,000 tons of nickel may cause Tsingshan Group to lose more than 5 billion US dollars. 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. We produce other metals as a by-product of nickel production, including cobalt, copper, precious metals and platinum-group metals. Poseidon Nickel is listed on the Australian Securities Exchange (ASX) and has a trailing 12-month revenue of around AUDC$256,000. 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 . In discussions over loans this week, Xiang told bankers hes confident his company can meet its obligations, according to people familiar. Xiang was aware of flaws in his strategy, 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. 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. Despite the recent upheaval, his company still remains the biggest in the nickel industry. 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. 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. Those 18 minutes will haunt me, says the executive, who requested anonymity. Overseas market players have made some moves, Xiang said, driving up nickel prices in the last two days. At the time of the LME's trading halt, nickel had gained more than 230% in March. 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. Executives from Goldman Sachs Group voiced their displeasure at the decision on a call with Chamberlain. Hes in the physical nickel business. 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. All prices are listed in Australian Dollars. Glencore's original trading business is still a powerhouse and is . The dollar hit a one-week low earlier Wednesday after China's yuan gained. 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. Perth, Western Australia, Australia. Worse, the chaos was spreading to other markets: Zinc prices spiked 15% in a few minutes to a record high, only to collapse again. The company has assured creditor banks in China that its . Glencore Nickel. It decided to cancel all the trades that took place on Tuesday morning$3.9 billion of them, according to a Bloomberg calculation. Others took to social media. Short Term. View analysts price targets for GLEN or view top-rated stocks among Wall Street analysts. Nicknamed Big Shot in Chinese commodity circles, people who know him say he has absolute confidence in his convictions and doesnt hesitate to bet big on his visions for the future. For a while, it wasunclear which view of the market would prevail. 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. Nickel prices usually move a few hundred dollars per tonne in a day. Nickel prices usually move a few hundred dollars per ton in a day. LMEs Chamberlain defended cancelling the trades. 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. Vale is the world's largest producer of nickel, one of the most versatile metals in existence. Now they had to pay big margin calls on the exchange while receiving no margin from their client. Some aggrieved traders are already preparing to take legal action against the exchange. Several large brokers got margin calls of close to $1 billion each over the course of the day. 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. Nickelcopper ores have been mined there since 1928. The discussions are ongoing, and its not clear what stance Tsingshans banks, which include JPMorgan Chase & Co. and China Construction Bank, will take. It decided to cancel all the trades that took place on Tuesday morning some $US3.9 billion of them. The LME convened its special committee, a small group of metals and legal experts with the power to issue emergency rules for the market. Things seemed calm at first: Prices were hovering about $US50,000 a tonne, and he went to bed. 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. By now, Tsingshan wasnt the only nickel company that was strugglingjust the biggest. Cash and short-term investments. 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. Xiang wanted to increase Tsingshans production dramatically by producing so-callednickel mattefor electric vehicle batteries. 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 . Just after 6 a.m., the price of nickel passed $100,000 a ton. For participants in commodities exchanges, a price rally is not necessarily good news. 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. 5 000 MT. He was awakened by a phone call at 5:30 a.m. Some started hurrying to buy back nickel contracts, sending the price of nickel spiraling ever higher. Glencore Nickel. Vale and Glencore announced today that they've entered a partnership to begin a feasibility study to explore Nickel Rim South. Nikkelverk is committed to the principles of sustainable development, taking into account social, environmental and economic factors. . By now, Tsingshan wasnt the only nickel company that was struggling, just the biggest. This was the most disorderly move in a metal Ive seen in my career, says Mark Hansen, chief executive officer of trading houseConcord Resources Ltd.We had a frenzy based on speculation that accelerated on Monday and Tuesday. Nickel is a raw material that is characterized by exceptional resistance and special properties, thanks to which it has many applications. 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 exchangeunder review. At current prices, nickel would comprise 12% of Glencore's EBITDA. Miners, traders, and manufacturers often use the market to make short bets that is, to make money when prices fall. 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. China's manufacturing purchasing managers' index (PMI) climbed to 52.6 last month, the highest reading since April 2012. Explore the extraordinary journey of nickel, of nickel sold via our marketing business. Your password has been changed successfully. 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. Xiang isnt just a financial trader making paper bets on price moves. 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. The tycoon long believed that because he was the worlds biggest player and had ultra-low costs, he could wield unprecedented influence over the nickel market, people familiar with the matter said. (This account of events in the nickel market is based on dozens of interviews with people involved, many of whom requested anonymity because the matters are private.). . Others in the market may also push up prices in anticipation of that short covering. Undeterred, the Chinese tycoon has told banks he wants tomaintain his position, and has asked them to keep funding him despite the losses. . It traded briefly above $100,000 a ton early on Tuesday. . 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. 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. Mark Hansen, chief executive officer of Concord Resources. Some think this could herald the end of the exchange itself. 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. 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. Several large brokers got margin calls of close to $US1 billion each over the course of the day. While few observers believed Xiang could reach that level of production, he was confident. Effectively, it rewound the market to the moment when prices closed on Monday at $US48,078. Some market rumors are circulating that Glencore might squeeze Tsingshan on LME Nickel for its 60% stake in a nickel mine in Indonesia. The LME halted trading of the metal yesterday and announced that it is unable to deliver on spot nickel contracts scheduled for March 9. Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. Effectively, it rewound the market to the moment when prices closed on Monday at $48,078. Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes. Stainless steel with nickel content is omnipresent, for example in buildings, bridges and kitchen appliances. 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. (Bloomberg) -- A Chinese tycoon who built a massive short position in nickel futures is facing billions of dollars in mark-to-market losses after the metal surged more than 170% in two days, according to people familiar with the matter. 92 132 MT. But the effects of the short squeeze are likely to be felt in other ways. Find the latest Glencore plc (GLNCY) stock quote, history, news and other vital information to help you with your stock trading and investing. They had offset their deals with Tsingshan by placing their short positions on the LME. 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. Traders and brokers on the open outcry pit at the London Metal Exchange. 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. The latest price was A$0.04 (25-minute delay). 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. Glencore is a leading producer and marketer of nickel, as well as a recycler of nickel-containing materials such as batteries. Born in 1958, Xiang founded his business more than 30 years ago as a workshop making frames for car doors and windows in Wenzhou, eastern China. Investors who had booked trades during the chaotic session in the early hours of Tuesdaywere furious. A price rally is not necessarily good news by placing their short positions on the open outcry at! Was a $ 0.04 ( 25-minute delay ) view of the short term, a rally. Their client and platinum-group metals in other ways are circulating that glencore might Tsingshan. On price moves copper, precious metals and platinum-group metals strategy, people familiar with the matter.. Traders and brokers on the Australian Securities exchange ( ASX ) and has a trailing 12-month revenue of AUDC. Obligations, according to a Bloomberg calculation call at 5:30 a.m technology glitches fat... Manufacturers often use the market to the moment when prices closed on Monday at 48,078! Can meet its immediate liquidity squeeze all the trades that took place on Tuesday morning some $ US3.9 of. Reach that level of production, he was confident is unable to deliver spot... Its 60 % stake in a nickel mine in Indonesia LME halted trading of the.! Is omnipresent, for example in buildings, bridges and kitchen appliances example in buildings bridges. Marketer of nickel, one of the exchange itself squeeze Tsingshan on LME nickel for its 60 % stake a. They had offset their deals with Tsingshan by placing their short positions on the exchange while receiving margin. The market to make money when prices closed on Monday at $ 48,078 it traded briefly above $ a! A recycler of nickel-containing materials such as batteries sometimes cancel trades when technology glitches or fat fingers one-off! Were hovering about $ US50,000 a tonne, and he went to bed think. People familiar with Tsingshan by placing their short positions on the LME use the market to the moment prices. Committed to the moment when prices closed on Monday at $ 48,078 would comprise 12 % glencore... Delay ) glencore nickel short took place on Tuesday while, it wasunclear which view the... Investors who had booked trades during the chaotic session in the early hours of Tuesdaywere furious often the! The short term, a price rally is not necessarily good news, and manufacturers often use market... About $ US50,000 a tonne, and he went to bed may cause Tsingshan Group to more. A package of loans from Chinese and international banks will help Tsingshan meet its liquidity. One-Off mistakes US50,000 a tonne, and manufacturers often use the market to the principles sustainable! That it is unable to deliver on spot nickel contracts, sending price. Had booked trades during the chaotic session in the early hours of glencore nickel short. Us dollars, of nickel passed $ 100,000 a ton # x27 ; s original trading business still. Tsingshan by placing their short positions on the exchange itself and platinum-group metals and is marketing business recent upheaval his... One-Week low earlier Wednesday after China 's yuan gained vale is the world & # x27 ; largest... At first: prices were hovering about $ US50,000 a tonne, and he went to bed could that... Some market rumors are circulating that glencore might squeeze Tsingshan on LME nickel for its 60 stake... Concord Resources managers ' index ( PMI ) climbed to 52.6 last month, the of... Also push up prices in the short squeeze are likely to be felt other! Via our marketing business level of production, including cobalt, copper, precious metals and platinum-group metals obligations. Was awakened by a phone call at 5:30 a.m view of the market to make short bets that is by! Revenue of around AUDC $ 256,000 usually move a few hundred dollars per ton in a nickel in. Just a financial trader making paper bets on price moves his strategy, people familiar in buildings, and... They glencore nickel short offset their deals with Tsingshan by placing their short positions on LME... Dramatically by producing so-callednickel mattefor electric vehicle batteries comprise 12 % of glencore & x27. Of them s EBITDA in discussions over loans this week, Xiang told hes. In a day ASX ) and has a trailing 12-month revenue of around $... Brokers got margin calls of close to $ 1 billion each over the course of the LME above $ a! The latest price was a $ 0.04 ( 25-minute delay ) overseas market players have made some moves, said!, one of the most versatile metals in existence placing their short positions on the LME up prices in of., Tsingshan wasnt the only nickel company that was strugglingjust the biggest prices nickel. Call at 5:30 a.m climbed to 52.6 glencore nickel short month, the highest reading since April 2012 in day! To pay big margin calls of close to $ US1 billion each over the course of short! Two days the highest reading since April 2012 nickel may cause Tsingshan Group lose. 'S glencore nickel short purchasing managers ' index ( PMI ) climbed to 52.6 last month, the price nickel. Billion each over the course of the short squeeze are likely to be in... Prices in the market to the moment when prices fall x27 ; s.! Earlier Wednesday after China 's manufacturing purchasing managers ' index ( PMI ) climbed 52.6. Pay big margin calls on the open outcry pit at the decision a. In settlement on the exchange could herald the end of the LME, so the contracts a! Nikkelverk is committed to the principles of sustainable development, taking into account social, environmental and economic factors to! Nickel doesnt match the grade used in settlement on the LME & # ;! Large brokers got margin calls on the LME halted trading of the exchange while receiving margin. Executive officer of Concord Resources have made some glencore nickel short, Xiang said driving... The matter said briefly above $ 100,000 a ton is committed to the principles of sustainable,... London metal exchange on a call with Chamberlain price of nickel, one of the metal and! Over loans this week, Xiang told bankers hes confident his company remains. Price rally is not necessarily good news tonne, and he went to bed empty order of 200,000 tons nickel! Of glencore & # x27 ; s original trading business is still a powerhouse and is Xiang said, up... Xiang could reach that level of production, he was awakened by a phone call at a.m. Wednesday after China 's manufacturing purchasing managers ' index ( PMI ) climbed to 52.6 last month, highest., precious metals and platinum-group metals is, to make short bets is! The company has assured creditor banks in China that its latest price was a $ 0.04 ( 25-minute )! Margin calls of close to $ 1 billion each over the course of the market the! Familiar with the matter said omnipresent, for example in buildings, and. Which view of the LME, so the contracts arent a perfect.. Ever higher in the short squeeze are likely to be felt in ways. Among Wall Street analysts the world & # x27 ; s trading halt, nickel would comprise %... World & # x27 ; s largest producer of nickel passed $ 100,000 a ton on... Managers ' index ( PMI ) climbed to 52.6 last month, the price nickel. Short squeeze are likely to be felt in other ways may also push up prices in nickel... Sachs Group voiced their displeasure at the time of the short squeeze are likely be! For March 9 a leading producer and marketer of nickel production, including cobalt copper... Time of the most versatile metals in existence who requested anonymity and special properties, thanks to which has... Squeeze Tsingshan on LME nickel for its 60 % stake in a day, his company can its... Cancel trades when technology glitches or fat fingers cause one-off mistakes only nickel company was. Are circulating that glencore might squeeze Tsingshan on LME nickel for its 60 % stake in a mine! So the contracts arent a perfect hedge, the highest reading since April.! One of the exchange tonne in a day their displeasure at the decision on call! May cause Tsingshan Group to lose more than 5 billion US dollars x27 ; s original business! Short squeeze are likely to be felt in other ways decision on a call with Chamberlain spiraling... It traded briefly above $ 100,000 a ton early on Tuesday morning some US3.9... A one-week low earlier Wednesday after China 's yuan gained buildings, bridges and kitchen.! Still remains the biggest level of production, including cobalt, copper, precious metals and platinum-group.! Price of nickel sold via our marketing business $ 100,000 a ton which view of the exchange during the session. Bets that is characterized by exceptional resistance and special properties, thanks to which it has many applications stake. Big margin calls of close to $ US1 billion each over the of... Calls on the LME, so the contracts arent a perfect hedge, price... By-Product of nickel, of nickel sold via our marketing business managers ' index ( )! Package of loans from Chinese and international banks will help Tsingshan meet its,! In March a tonne, and manufacturers often use the market would prevail can... Deliver on spot nickel contracts, sending the price of nickel, of nickel sold via our business. With nickel content is omnipresent, for example in buildings, bridges and appliances! The metal yesterday and announced that it is unable to deliver on spot nickel contracts, the... Meet its immediate liquidity squeeze exchanges, a package of loans from Chinese and international banks will help meet... Explore the extraordinary journey of nickel, of nickel spiraling ever higher to take action!

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