glencore nickel short

For Xiangs big short position, that was painful. Effectively, it rewound the market to the moment when prices closed on Monday at $US48,078. Overseas market players have made some moves, Xiang said, driving up nickel prices in the last two days. Major international companies like BHP Group Ltd. and Rio Tinto Plc hedge against currencies, commodity prices and interest rates on an as required basis. 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. 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. 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. Our fundamental responsibility is market stability, he told Bloomberg TV. 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. Its not clear to what extent Xiang saw his position as merely a hedge or as a speculative bet. 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 . Copper. Sudbury Integrated Nickel Operations are located in the Sudbury basin, northern Ontario, Canada. Some hedge funds were buying nickel contracts in a bet on the electric vehicle boom. Futures traded on the London Metal Exchange surged over 250 percent to USD101,365 a ton yesterday from March 7. Glencore Nickel. A decision to close out the 200,000-ton short position would result in a loss of about USD8 billion, the person said. 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. Follow the topics, people and companies that matter to you. By now, the entire nickel industry was in crisis. Despite the recent upheaval, his company still remains the biggest in the nickel industry. 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. 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. Bloomberg Daybreak Middle East. Hansen of Concord Resources argues that financial investors who traded nickel last week should have been prepared for the LME to step in. By now, the entire nickel industry was in crisis. But while the short squeeze has weighed on Tsingshans short-term cash flows, strong nickel prices are to its advantage in the long run. The seeds of the epic short squeeze were sown last year, when nickel, like all commodities, was rallying from its Covid-era low. It was a classic short squeeze, as the pain for Tsingshan, its brokers, and other shorts created a self-reinforcing cycle. Long Term . As Russias invasion of Ukraine pushed up prices, short-position holders including Tsingshan scrambled to trim their bets. 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. 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. Certain sections of this system have been patented. It was 5.42 am on March 8 in London when the nickel market broke. 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. (via NewsDirect) Helix Resources Ltd (ASX:HLX) MD Mike Rosenstreich tells Proactive the company is ready to spin out its nickel and cobalt interests in the prolific Cobar Basin of NSW into a special-purpose vehicle aimed at maximising value for shareholders. The fallout was immediate. 20 kt/a nickel in concentrate) and Fraser Morgan (ca. 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. In discussions over loans this week, Xiang told bankers hes confident his company can meet its obligations, according to people familiar. Its not just a casino.. Our analysis assumes the development of Onaping Deeps with production commencing in 2021 at a capital cost of $750 million. 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. Since 1910, nickel and other metals have been refined, produced and exported from the production plant in Kristiansand. 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. Tsingshan is an excellent Chinese enterprise.. A Glencore spokesman declined to comment. Nickel is a raw material that is characterized by exceptional resistance and special properties, thanks to which it has many applications. Those 18 minutes will haunt me, says the executive, who wasnt authorized to speak publicly. Everything changed when Russia invaded Ukraine. Mark Hansen, chief executive officer of Concord Resources, Help using this website - Accessibility statement. Tsingshan didnt respond to multiple requests for comment, and Xiang couldnt be independently reached. How Xiang got to this point is a story that encompasses Chinas emergence as a global economic behemoth. That put Tsingshans banks and brokers, which includeJPMorgan Chase,BNP Paribas, andStandard Chartered,in a bind. Feb 2021 - Dec 202111 months. At 1am on March 8, the market opened. 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. Those 18 minutes will haunt me, says the executive, who requested anonymity. Trafigura Lines Up Russia Aluminum Deal in Challenge to Glencore. In the meantime, the nickel market is on ice, with traders unable to exit their positions, and many billions of dollars tied up in margin calls. In the short term, a package of loans from Chinese and international banks will help Tsingshan meet its immediate liquidity squeeze. As of the evening of March 13, the LME had yet to announce a date for nickel trading to resume. That put Tsingshans banks and brokers, which include JPMorgan Chase, BNP Paribas, and Standard Chartered, in a bind. Production 2019. Stainless steel with nickel content is omnipresent, for example in buildings, bridges and kitchen appliances. People forgot that this isnt a video game retailer; its an important physical commodity.. Market speculation has it that Tsingshan has a short position of about 200,000 tons of nickel, which it cannot deliver due to a lack of spot product after being assailed and squeezed out by US and European commodity futures giants such as Glencore, China Securities Journal reported yesterday. Now, people familiar with the matter say, the exchange is likely to introduce such measures as position limits and greater transparency. The price move on March 8 created a systemic risk to the market, the LME said two days later. The LME convened its special committee, a small group of metals and legal experts with the power to issue emergency rules for the market. But the effects of the short squeeze are likely to be felt in other ways. 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 . Investors who had booked trades during the chaotic session in the early hours of Tuesdaywere furious. 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. 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. 2W - 6W. 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. 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. 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. Tsingshan didnt respond to multiple requests for comment, and Xiang couldnt be independently reached. 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. Shanghai's most-traded nickel futures contract . The company paid at least some of its margin calls early on Monday, according to a person familiar with the matter. Its not clear to what extent Xiang saw his position as merely a hedge or as a speculative bet. Undeterred, the Chinese tycoon has told banks he wants to maintain his position, and has asked them to keep funding him despite the losses. Anyone using the LME needs to understand that. . Share. Nickel is also used in certain types of steel which lower magnetic properties. Things seemed calm at first: Prices were hovering about $US50,000 a tonne, and he went to bed. Finance > Capital-markets. Our marketing business markets nickel and nickel concentrates, as well as by-products and ferronickel. 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. Tsingshans short position could have incurred mark-to-market losses of at least $2 billion on Monday alone, people familiar with the matter said. 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. Earlier this week, nickel prices in London spiked by as much as 250 per cent in little more than 24 hours. Strong passwords include numbers,letters,and special characters. Short Interest; Premarket Screener . A Chinese tycoon who built a massive short position in nickel futures is facing billions of dollars in mark-to-market losses after this week's unprecedented price spike, according to people . In late February and early March, Tsingshan, which had sales of 352 billion yuan ($77 billion) last year, paid its margin calls on time. . 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. Anglo, which produced 59.3 million tonnes of iron ore last year, aims to halve its Scope 3 indirect emissions by 2040. Some started hurrying to buy back nickel contracts, sending the price of nickel spiraling ever higher. By now, Tsingshan wasnt the only nickel company that was strugglingjust the biggest. This suggests a possible upside of 27.1% from the stock's current price. Once its industrial complex reaches peak p. Source: LME. 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. The spike was driven in large part by a short squeeze centered on Chinese tycoon Xiang Guangda, who hadamassed a big wagerthat nickel prices would fall through his companyTsingshan Holding Group Co.On Monday, a week after trading had been suspended, Xiang wasclose to securing a loan facilityfrom JPMorgan Chase & Co. and other banks that would allow him to maintain his short position and could lead to the market reopening. They held a hurried call on Monday evening, but decided to allow the nickel market to continue trading. Mark Hansen, chief executive officer of Concord Resources. 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. The company paid at least some of its margin calls early on March 7, says one person familiar with the matter. Monday at $ US48,078: LME squeeze, as well as by-products and ferronickel to close the... Speak publicly 250 percent to USD101,365 a ton yesterday from March 7 price... His company can meet its obligations, according to a person familiar the... Plant in Kristiansand fundamental responsibility is market stability, he told Bloomberg TV, soaring $ 30,000 in bind... Little more than 24 hours put Tsingshans banks and brokers, which include JPMorgan Chase, BNP Paribas, Xiang. 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