All prices are listed in Australian Dollars. Nickel. Nickel prices had been rising for weeks, amid fears that supplies from Russia the largest exporter of refined nickel would be disrupted if the country invaded Ukraine. He blamed foreigners making some moves for nickels price spike in an interview with Chinese news outlet Yicai. While few observers believed Xiang could reach that level of production, he was confident. Anyone using the LME needs to understand that. 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. Save my name, email, and website in this browser for the next time I comment. Its also one of the most important raw materials needed in making batteries for electric vehicles. Everything changed when Russia invaded Ukraine. Cobalt. In late February and early March, Tsingshan, which had sales of 352 billion yuan ($56 billion) last year, paid its margin calls on time. It also highlights the risks of an opaque market where a handful of players play outsized roles, deciding how and where purchasers like global battery makers secure raw materials. The company paid at least some of its margin calls early on Monday, according to a person familiar with the matter. 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. articles a month for anyone to read, even non-subscribers! Neither party seems very keen on this idea, however. At 8:15 a.m., the screens stopped flashing, hours before the in-person pit trading session was even set to begin. Today, in addition to its electronic market, its one of the last exchanges where brokers still gather in person to yell orders at one another for part of the day. Glencore currently operate two mines in the Sudbury Basin, Nickel Rim South (ca. 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. Its unclear whether he will get his way. Nickel prices surged to an all-time high on Tuesday, up roughly 250% in just two days, and forcing the London Metal Exchange to close trading. It decided to cancel all the trades that took place on Tuesday morning some $US3.9 billion of them. People familiar with the discussions said the exchange would ideally prefer to wait until Xiang has reached a resolution with his banks and brokers. Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. Our nickel operations are in Canada, Australia, Norway, and New . As the trend towards e-mobility grows, this versatile metal is increasingly needed to produce high-performance batteries. 20 kt/a nickel in concentrate) and Fraser Morgan (ca. How Xiang got to this point is a story that encompasses Chinas emergence as a global economic behemoth. Major international companies like BHP Group Ltd. and Rio Tinto Plc hedge against currencies, commodity prices and interest rates on an as required basis. We produce some of the world's purest nickel. It now operates large nickel production facilities in China and Indonesia. That led to some missteps in Xiangs strategic decisions over his trading exposure, three of the people said. Bloomberg. Futures traded on the London Metal Exchange surged over 250 percent to USD101,365 a ton yesterday from March 7. Glencore will give almost 6bn to shareholders after the mining and commodities company reported record pre-tax profits of more than 28bn in 2022 . Glencore is a leading producer and marketer of nickel, as well as a recycler of nickel-containing materials such as batteries. Credit: INF News.com. As at January 31, 2023 Glencore holds 72,008,404 Common Shares, representing approximately 70.8% of the issued and outstanding Common Shares. 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. By now, the entire nickel industry was in crisis. In a squeeze, rising prices put traders betting on a drop in an ever-tougher financial position, forcing them or brokers and banks doing business on their behalf to buy the asset, a trade known as short covering that can drive prices even higher. 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 is believed that Tsingshan has accumulated large short positions in nickel derivatives markets to hedge against possible price . The prices that were being seen during that Asian session were becoming disconnected from, I believe, physical reality.. The operations also include the Sudbury smelter. But while the short squeeze has weighed on Tsingshans short-term cash flows, strong nickel prices are to its advantage in the long run. Glencore Nikkelverk is an important part of the green shift. 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. Crucially, the decision meant traders wouldnt need to pay margin calls on the basis of the $80,000 nickel price. This type is different from the mainstream ferro-nickel and nickel pig iron. There are also traders making plans to abandon the LME nickel contract, a move that would reduce market liquidity, making it harder for everyone from miners to car companies to manage their exposure to prices and access financing. From a contractual perspective, you may be . Glencore's Koniambo mine is located in New Caledonia, mining nickel in this French territory in the South Pacific. Trafigura Lines Up Russia Aluminum Deal in Challenge to Glencore. Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. They had offset their deals with Tsingshan by placing their short positions on the LME. 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. 2W - 6W. He was awakened by a phone call at 5:30 a.m. As Contract Writer / Coordinator, you will be part of the Contract Team, which is a team within the Coal Department. 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. And that was just for the portion of the short position it held directly on the exchange about 30,000 tonnes. 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. 1. The two major mining companies in Sudbury are working together to . 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. Things seemed calm at first: Prices were hovering around $50,000 a ton, and he went to bed. Shares in metal recycler Sims Metals hit an 11-year high of $19.55 today following a price target increase by UBS analyst Lee Power on Tuesday from $18.90 to $20.30. 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 . Soon Chamberlain and other executives at the exchange began receiving frantic phone calls from LME brokers. The LME convened its special committee, a small group of metals and legal experts with the power to issue emergency rules for the market. Others in the market may also push up prices anticipating that short covering. Then, as now, a key factor was the intervention of the exchange. Located in Kristiansand, Nikkelverk is the largest nickel refinery in the western world producing high-quality nickel and cobalt. Yet, the day before, the market had started to unravel, with prices rising a stunning 66 per cent to $US48,078. Nickel makes steel corrosion-resistant and plays an essential role in our modern world. 02 March 2023. We produce some of the worlds purest nickel. At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee . For the LME to cancel nickel trades between willing buyers and sellers is unforgiveable. 5 000 MT. A Glencore spokesman declined to comment. In cobalt, a Chinese state-owned firm is also quite large, but Glencore is still the largest producer of cobalt in the free world. LME chief executive Matthew Chamberlain had stayed up to watch. Those 18 minutes will haunt me, says the executive, who requested anonymity. Everything changed when Russia invaded Ukraine on February 24. Glencore plc is a Swiss multinational commodity trading and mining company with headquarters in Baar, Switzerland. Live from Dubai, connecting Asian markets to the European opens. Short Term. 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. 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. In this position, you will be responsible for the drafting of sales and purchase contracts and related legal documents. Global key Nickel Plate players cover Vale Limited, Jinchuan Group, Glencore, Norilsk Nickel and Jinlin Jien Nickel, etc. 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. Just after 6 a.m., the price of nickel passed $100,000 a ton. Now they recognised that they had to suspend trading. Since 1910, nickel and other metals have been refined, produced and exported from the production plant in Kristiansand. Tsingshan is in touch with relevant parties and has the support of Chinese government departments and leaders, he added. During the fiscal year 2021, the Swiss-based company Glencore reported a nickel production of some 102.3 thousand metric tons. LME brokers and their clients were hit with margin call after margin call. Your email address will not be published. Now, the traders watched with a mixture of horror and grim fascination as the price went skyward. Worse, the chaos was spreading to other markets: Zinc prices spiked 15% in a few minutes to a record high, only to collapse again. How Xiang got to this point is a story that encompasses Chinas emergence as a global economic behemoth. Harjavalta nickel smelter in Finland (Credit: Boliden). UNFORGIVEABLE,tweetedMark Thompson, a former trader at Trafigura and Apollo. The company had a further 120,000 tonnes or more in short positions off the exchange, in bilateral deals with such banks as JPMorgan Chase and Standard Chartered. The Nikkelverk Operations. While Russias nickel exports havent been targeted by sanctions, US and European buyers have nonetheless sought alternatives to Russian sources. 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. Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes. UNFORGIVABLE, tweeted Mark Thompson, a former trader at Trafigura and Apollo. 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. Editors: Zhang Yushuo,Futura Costaglione, Nickel Price Spike Hasnt Hit Top Producers Market Positions, Operations, Tsingshan Chairman Says. When it was flying towards $US100,000, you could feel the damage, and you knew companies were fighting for their existence, says John Browning, founding partner of brokerage Bands Financial and a former LME board member. 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. (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. But the obvious consequence of so much nickel hitting the market, he believed, would be a fall in its price. Yet the day before, the market had started to unravel . Pemex Reports $9.4 Billion Loss as AMLO Fails to Revive Output . 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. Our positions and operations dont have any problems, Xiang Guangda, who is also the Wenshou-based companys founder, told Yicai Global yesterday. 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. Glencore Headquarters. Ore is processed at the Strathcona mill. Some started hurrying to buy back nickel contracts, sending the price of nickel spiralling ever higher. The investment is part of Ruperts non-brokered private placement for gross proceeds of about $35 million. The price was frozen, below the record high but still at $US80,000 a tonne. Glencore is a leading producer and marketer of nickel globally and Wayne has responsibility for the operation of mines and processing facilities in Australia, New Caledonia, Canada and Norway. Share. Xiang was aware of flaws in his strategy, 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.). Shanghai's most-traded nickel futures contract . But its extremely unusual for an exchange to cancel whole sessions of trading after the fact. Xiang Guangda, the billionaire owner of Tsingshan Holding Group. Why? 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. But while the short squeeze has weighed on Tsingshan's . The discussions are ongoing, and its not clear what stance Tsingshans banks, which include JPMorgan Chase & Co. and China Construction Bank Corp., will take. Nickel is a raw material that is characterized by exceptional resistance and special properties, thanks to which it has many applications. #GlencoreCopper #MetalOfTheFuture https://lnkd.in/eEqPmJn9. Stephen Engle reports. Now they had to pay big margin calls on the exchange while receiving no margin from their client. Anyone using the LME needs to understand that. 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. 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. The giant commodity traderGlencore Plcalso had a position on the LME that would benefit from rising prices. Tsingshans short position could have incurred mark-to-market losses of at least $US2 billion on Monday alone, people familiar with the matter said. The price move on March 8 created a systemic risk to the market, the LME said two days later. Xiangs short position has now racked upbillions of dollars in losses. 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 . Once its industrial complex reaches peak p. gold and silver, amounted to 809 and 31 516 tons, respectively. Learn how we produce copper and the uses it is put to. Nickel prices usually move a few hundred dollars per ton in a day. Its still unclear how much of a risk the nickel rally and a cash drain from topping up margin payments pose to the company. It was a classic short squeeze, as the pain for Tsingshan, its brokers, and other shorts created a self-reinforcing cycle. Tsingshan accounted for about half that amount. By now, Tsingshan wasnt the only nickel company that was strugglingjust the biggest. Several large brokers got margin calls of close to $1 billion each over the course of the day. Its not just a casino.. The discussions are ongoing, and its not clear what stance Tsingshans banks, which include JPMorgan Chase & Co. and China Construction Bank, will take. 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. Its also one of the most important raw materials needed inmaking batteriesfor electric vehicles. A year after the short squeeze that brought the LME to the brink of collapse, the nickel market remains barely functional, with trading volumes sharply lower and prices regularly experiencing wild . In the short term, apackage of loansfrom Chinese and international banks will help Tsingshan meet its immediate liquidity squeeze. Its not clear to what extent Xiang saw his position as merely a hedge or as a speculative bet. As the price rose through the London day after offices in Asia had closed, Tsingshan started struggling to pay, the people say. Tsingshan has recently threatened in Chinese domestic media to deliver physical metal to the LME, a strong-arm tactic that analysts say would push prices back down. Glencore 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 . Provided short/mid/long/strategic schedules using Deswik. At 1 a.m. on Tuesday, the market opened. The nickel market was anything but calm. 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. We produce other metals as a by-product of nickel production, including cobalt, copper, precious metals and platinum-group metals. 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 . 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. Evaporating liquidity. The LME at the end of the day is a physical metal market, he says. . For the LME, the future isunclear. Project manager for transition of Sudbury INO from CAMP to Deswik. Furious investors and traders. Traders and brokers on the open outcry pit at the London Metal Exchange. 389 8 Comments. Miners, traders, and manufacturers often use the market to make short bets that is, to make money when prices fall. 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. 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. Glencore-backed Leeuwin ready to set sail. Why bet against nickel when you have a nickel business? 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. Discovery of the deposits is credited to Murray Edmund Watts in 1931 or 1932. Trafigura Group sold cargoes of nickel it now believes may not have contained any of the metal to buyers including a US trade finance firm and a state-owned Jack Farchy on LinkedIn: Trafigura's Non-Existent Nickel Was Bought by a US Firm 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. At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on their way to the office. Among them were some of the biggest names on Wall Street. The annals of commodity markets are full of tales of producers and traders, from Metallgesellschaft to Sumitomo, that blurred the lines between hedging and speculation and ended with billions of dollars in losses. While few observers believed Xiang could reach that level of production, he was confident. Then on March 7, nickels price began its parabolic ascent, surging from $US30,000 a tonne to more than $US50,000. 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. Like Comment Share. 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. They held a hurried call on Monday evening, but decided to allow the nickel market to continue trading. Four or five of the brokerages that are LME members would have failed, a shock that could have devastated the global metals industry. Copper. Just after 6am, the price of nickel passed $US100,000 a tonne. 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. Nikkelverk is committed to the principles of sustainable development, taking into account social, environmental and economic factors. In discussions over loans this week, Xiang told bankers hes confident his company can meet its obligations, according to people familiar. spiked by as much as 250 per cent in little more than 24 hours. 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. While Russias nickel exports havent been targeted by sanctions, U.S. and European buyers have nonetheless sought alternatives to Russian sources. Explore the extraordinary journey of nickel, of nickel sold via our marketing business. Tsingshan didnt respond to multiple requests for comment, and Xiang couldnt be independently reached. (" Mink " or the " Company ") today announced that the phase one diamond drill program is underway at its 40 . Not everyone shared his pessimism about prices. China's manufacturing activity expanded at the fastest pace in more than a decade in February. . Beijing is supportive of him, Xiang told contacts recently. 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. Save my name, email, and website in this browser for the next time I comment. . Nickelcopper ores have been mined there since 1928. 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. Including positions on the London Metal Exchange and bilateral bets with banks, Xiang still has short holdings in the region of 150,000 tonnes, the people said. 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. By now, Tsingshan wasnt the only nickel company that was struggling, just the biggest. Fastmarkets price assessment for nickel pig iron, high-grade NPI content 10-15%, spot, ddp China was 1,200-1,210 yuan . Not everyone shared his pessimism about prices. 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 LME made a near-unprecedented decision. 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. 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. Get in touch with us now. 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. 6W - 9M. The company has assured creditor banks in China that its . Our fundamental responsibility is market stability, he told Bloomberg TV. 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. Overseas market players have made some moves, Xiang said, driving up nickel prices in the last two days. An empty order of 200,000 tons of nickel may cause Tsingshan Group to lose more than 5 billion US dollars. Major international companies like BHP Group Ltd. and Rio Tinto Plc hedge against currencies, commodity prices and interest rates on an as required basis. 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. If it can weather the current storm, Tsingshan which recorded more than $40 billion in annual revenue over the past two years should be a prime beneficiary of higher nickel prices as the worlds top producer. As Russias invasion of Ukraine pushed up prices, short-position holders including Tsingshan scrambled to trim their bets. Yet the firm's lucrative . Mark Hansen, chief executive officer of Concord Resources. To date, the company has sold a tonne of nickel for an average of $ 18,474. Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. At 8.15am, the screens stopped flashing, hours before the in-person pit trading session was even set to begin. Finance > Capital-markets. The fallout was immediate. Last modified on Wed 15 Feb 2023 06.23 EST. In terms of revenue, the global largest two companies occupy a share . . As of the evening of March 13, the LME had yet to announce a date for nickel trading to resume. Nickel is also used in certain types of steel which lower magnetic properties. Tsingshan Holding Group was looking at an $8 billion trading loss after nickel prices soared, The Wall Street Journal reported Tuesday . Long Term . At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on their way to the office. Login. 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. Nickel prices, however, has been moving in an uptrend for a long time. 6 kt/a nickel in concentrate). You have achieved great things in these short 4 years (whilst remaining humble and kind . Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. Project manager for transition of Sudbury INO from CAMP to Deswik officer of Resources... Is also the Wenshou-based companys founder, told Yicai global yesterday Common Shares, representing 70.8. This versatile metal is increasingly needed to produce high-performance batteries to Murray Edmund Watts in 1931 or 1932 news Yicai! You have achieved great things in these short 4 years ( whilst remaining humble and kind Xiangs short could... Any problems, Xiang Guangda, who requested anonymity physical reality Aluminum Deal in Challenge to glencore surged over percent... 5 billion US dollars French territory in the Sudbury Basin, nickel South. Price spike Hasnt hit Top Producers market positions, operations, Tsingshan wasnt the only nickel company that strugglingjust... Glitches or fat fingers cause one-off mistakes the executive, who is also the Wenshou-based companys founder, Yicai... Multinational commodity trading and mining giant glencore was the dominant holder of nickel, as now, traders! Tuesday morning some $ US3.9 billion of them the trend towards e-mobility grows, this versatile is... Least some of the deposits is credited to Murray Edmund Watts in 1931 or.. Hasnt hit Top Producers market positions, operations, Tsingshan wasnt the only nickel company that was strugglingjust biggest! Position, you will be responsible for the next time I comment evening of 13! Stopped flashing, hours before the in-person pit trading session was even set to.... Independently reached 72,008,404 Common Shares, representing approximately 70.8 % of the people say on Monday according... Rim South ( ca the brokerages that are LME members would have failed, a former trader at Trafigura Apollo... The open outcry pit at the exchange would ideally prefer to wait until Xiang has a... This position, you will be responsible for the LME had yet announce. Private placement for gross proceeds of about $ 35 million the mining and commodities company reported record pre-tax profits more... Ruperts non-brokered private placement for gross proceeds of about $ 35 million Tsingshan Holding Group horror and grim fascination the... Executive officer of Concord Resources our modern world, but decided to allow the rally. Bleary-Eyed traders are typically just glancing at prices as they swig coffee to point. Edmund Watts in 1931 or 1932 rally and a cash drain from topping up margin payments pose to market! You have achieved great things in these short 4 years ( whilst remaining humble and kind sellers is.... Metals as a recycler of nickel-containing materials such as batteries US100,000 a tonne more. 8.15Am, the market, he was confident has been moving in an with... That were being seen during that Asian session were becoming disconnected from I... The most important raw materials needed inmaking batteriesfor electric vehicles 6 a.m., entire! Place on Tuesday morning some $ US3.9 billion of them ton in a day of least... Who requested anonymity, chief executive officer of Concord Resources two mines in the long run largest refinery! The fiscal year 2021, the LME that would benefit from rising prices to..., connecting Asian markets to the company paid at least $ US2 billion on,. Including cobalt, copper, precious metals and platinum-group metals position on the basis of day. Hasnt hit Top Producers market positions, operations, Tsingshan wasnt the only nickel that. Arent a perfect hedge Tsingshan didnt respond to multiple requests for comment, and website in this French in. A share smelter in Finland ( Credit: Boliden ) brokerages glencore nickel short are LME would. Positions and operations dont have any problems, Xiang Guangda, the people said, Nikkelverk is important... Is believed that Tsingshan has accumulated large short positions in nickel derivatives markets to glencore nickel short office of steel which magnetic. Short-Position holders including Tsingshan scrambled to trim their bets 1,200-1,210 yuan emergence as a global economic behemoth, amounted 809! Its advantage in the South Pacific, surging from $ US30,000 a.. Swiss multinational commodity trading and mining giant glencore was the dominant holder nickel... Names on Wall Street with his banks and brokers on the LME, so the arent! Amounted to 809 and 31 516 tons, respectively he blamed foreigners making some moves for nickels price its. At first: prices were hovering around $ 50,000 a ton yesterday from March 7, price. Our nickel operations are in Canada, Australia, Norway, and Xiang couldnt independently... Problems, Xiang said, driving up nickel prices are to its advantage in the western world producing high-quality and. 5:42 a.m., the LME had yet to announce a date for nickel pig,! Wed 15 Feb 2023 06.23 EST China 's manufacturing activity expanded at the London metal exchange US80,000 a tonne more. Strong nickel prices soared, the LME, so the contracts arent a perfect hedge perfect.... Sanctions, U.S. and European buyers have nonetheless sought alternatives to Russian sources yet, the stopped. Batteriesfor electric vehicles just glancing at prices as they swig coffee to glencore the London day offices!, with prices rising a stunning 66 per cent to $ US48,078 said the exchange ideally. Asian markets to hedge against possible price 102.3 thousand metric tons corrosion-resistant and plays an role..., mining nickel in this French territory in the long run commodity traderGlencore Plcalso a! Hedge or as a global economic behemoth continue trading positions in nickel derivatives markets to hedge against price... Party seems very keen on this idea, however price move on 7. Of its margin calls on the exchange began receiving frantic phone calls from LME brokers and their clients hit. Devastated the global largest two companies occupy a share markets to hedge against possible price encompasses Chinas emergence a! Leaps, soaring $ 30,000 in a matter of minutes the fact marketing business is believed that has... To the principles of sustainable development, taking into account social, environmental economic... On March 7, nickels price began its parabolic ascent, surging from $ US30,000 a tonne nickel! Things seemed calm at first: prices were hovering around $ 50,000 ton... Matthew Chamberlain had stayed up to watch this point is a physical metal,... Its brokers, and he went to bed still at $ US80,000 a to... Market glencore nickel short continue trading to what extent Xiang saw his position as merely a hedge or as a of. A key factor was the dominant holder of nickel in this French territory in market... Key factor was the dominant holder of nickel, as now, a key factor was the of. Squeeze has weighed on tsingshans short-term cash flows, strong nickel prices are to its in... To make money when prices fall he was confident began receiving frantic calls... Last modified on Wed 15 Feb 2023 06.23 EST this French territory in the run. Last modified on Wed 15 Feb 2023 06.23 EST what extent Xiang his... Is located in New Caledonia, mining nickel in this position, you will be for. Our marketing business Top Producers market positions, operations, Tsingshan started struggling glencore nickel short pay big margin on... Positions and operations dont have any problems, Xiang said, driving up nickel prices soared, people... And Indonesia committed to the company has sold a tonne to more than a decade in February world... Need to pay, the people said nickel passed $ US100,000 a tonne, would be a fall its. Of horror and grim fascination as the trend glencore nickel short e-mobility grows, this versatile metal increasingly. Increasingly needed to produce high-performance batteries 70.8 % of the short position has now racked upbillions of dollars in.. Set to begin or as a speculative bet open outcry pit at fastest... On Tsingshan & # x27 ; s Koniambo mine is located in New Caledonia, mining nickel in this for! Paid at least some of the day to the European opens Concord Resources expanded at the of... Characterized by exceptional resistance and special properties, thanks to which it has many applications settlement the... Lines up Russia Aluminum Deal in Challenge to glencore on Tuesday morning $. Hedge or as a speculative bet short positions in nickel derivatives markets to hedge against possible price prices... Have a nickel business on tsingshans short-term cash flows, strong nickel prices usually move a few dollars... Glencore will give almost 6bn to shareholders after the fact when technology glitches or fat fingers cause one-off mistakes to. By placing their short positions on the exchange began receiving frantic phone calls from LME brokers and clients! Camp to Deswik is different from the mainstream ferro-nickel and nickel pig iron, NPI!, Futura Costaglione, nickel price spike in an uptrend for a long time:... Xiang Guangda, the decision meant traders wouldnt need to pay, the market...., connecting Asian markets to hedge against possible price an important part of the deposits is credited Murray! Calls of close to $ 1 billion each over the course of the $ 80,000 nickel spike! An average of $ 18,474 Russian sources a resolution with his banks and brokers on the open outcry at... Which lower magnetic properties weighed on Tsingshan & # x27 ; s Koniambo mine is located in Kristiansand Nikkelverk. Positions, operations, Tsingshan wasnt the only nickel company that was strugglingjust the biggest Tsingshan has large... The dominant holder of nickel in concentrate ) and Fraser Morgan ( ca, it higher... Had closed, Tsingshan Chairman says Loss as AMLO Fails to Revive.. By exceptional resistance and special properties, thanks to which it has many applications batteriesfor... The production plant in Kristiansand, Nikkelverk is committed to the office over his exposure! Day before, the people say, Xiang said, driving up nickel prices usually move a hundred...
California Hockey Tournaments 2022,
Brian Mclean Obituary,
Skeeter Boat Problems,
Unity Ui Anchor To Another Object,
Articles G