glencore nickel short

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. The fallout was immediate. Once its industrial complex reaches peak p. It was a classic short squeeze, as the pain for Tsingshan, its brokers, and other shorts created a self-reinforcing cycle. 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 late February and early March, Tsingshan, which had sales of 352 billion yuan ($56 billion) last year, paid its margin calls on time. Why bet against nickel when you have a nickel business? At 1am on March 8, the market opened. But the effects of the short squeeze are likely to be felt in other ways. Its not just a casino.. It is believed that Tsingshan has accumulated large short positions in nickel derivatives markets to hedge against possible price . Provided short/mid/long/strategic schedules using Deswik. In the short term, apackage of loansfrom Chinese and international banks will help Tsingshan meet its immediate liquidity squeeze. Glencore Nikkelverk is an important part of the green shift. At 8.15am, the screens stopped flashing, hours before the in-person pit trading session was even set to begin. Glencore Nickel. In late February and early March, Tsingshan, which had sales of 352 billion yuan ($77 billion) last year, paid its margin calls on time. But its obligations dwarfed its available cash and bank credit. . Xiang didnt believe the rally would last. Now, people familiar with the matter say, the exchange is likely to introduce such measures as position limits and greater transparency. Investors who had booked trades during the chaotic session in the early hours of Tuesday were furious. The discussions are ongoing, and its not clear what stance Tsingshans banks, which include JPMorgan Chase & Co. and China Construction Bank Corp., will take. Tsingshan mostlymakesstainless steelthat isused inthepetroleum, chemicals, auto,and other fields. 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. Its still unclear how much of a risk the nickel rally and a cash drain from topping up margin payments pose to the company. Anyone using the LME needs to understand that. Related Article: Nickel price spike purely financial but Tsingshan effect could linger. MT. By now, Tsingshan wasnt the only nickel company that was struggling, just the biggest. Nickel rocketed to a record high above $100,000 a ton on Tuesday, driven in part by Tsingshan and its brokers activity, before trading was suspended. Sep 2021 - Present1 year 5 months. 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. One of the key Chinese players in last year's nickel short squeeze is preparing to meet London Metal Exchange Chief Executive Matthew Chamberlain in the first face-to-face encounter since the crisis that upended . The company paid at least some of its margin calls early on March 7, says one person familiar with the matter. The LME suspended nickel-market trading on Tuesday and the Shanghai Futures Exchange followed suit a day later, after prices on Chinas top commodities bourse hit their daily upward limit. Nickel prices had been rising for weeks, amid fears that supplies from Russia the largest exporter of refined nickel would be disrupted if the countryinvaded Ukraine. To date, the company has sold a tonne of nickel for an average of $ 18,474. By now, the entire nickel industry was in crisis. Tsingshan accounted for about half that amount. On this day, however, metal traders were glued to a screen, watching the price action on the electronic market, which was already open to accommodate Asian trading. Executives fromGoldman Sachs Group Inc.voiced their displeasure at the decision on a call with Chamberlain. He went on to pioneer new methods for producing nickel and stainless steel that upended the markets and made his Tsingshan the worlds largest producer of both. The so-called "hold short position" focuses on the word "hold" to hold the price higher, and the ultimate goal is to force Tsingshan Group's 200,000 tons of nickel to sell short positions, and there is no way to go. Those moves sent nickel to a record high of more than $100,000 a ton on Tuesday beforetrading was suspended. Tsingshan is in touch with relevant parties and has the support of Chinese government departments and leaders, he added. 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. But while the short squeeze has weighed on Tsingshan's . 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. Nickel boosts the energy within batteries and, at the same time, allows battery makers to reduce the use of more expensive cobalt. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Si estn subiendo los predios de los metales y dedcuieto nuevas forulasparavas frmulas paraformar y tranformar los metales megustaria encontrar una empresa ,organizacin,para si le interereza ase un tratado denegosiar un trato demostraciones y prbarles yensearleslo que estudie transformaciones aliaciones dijitales y la fabricacionde. They had offset their deals with Tsingshan by placing their own short positions on the LME. This type is different from the mainstream ferro-nickel and nickel pig iron. Traders and brokers on the open outcry pit at the London Metal Exchange. Then, as now, a key factor was the intervention of the exchange. 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. 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. Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes. Tsingshans short position could have incurred mark-to-market losses of at least $2 billion on Monday alone, people familiar with the matter said. Glencore-backed Leeuwin ready to set sail. Since 1910, nickel and other metals have been refined, produced and exported from the production plant in Kristiansand. View analysts price targets for GLEN or view top-rated stocks among Wall Street analysts. 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. . The price move on March 8 created a systemic risk to the market, the LME said two days later. 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 . 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 . 2017 - 2018 Yicai Global, Yicai Media Group. Those past scandals forced reforms on the exchange. Then on March 7, nickels price began its parabolic ascent, surging from $30,000 a ton to more than $50,000. We produce other metals as a by-product of nickel production, including cobalt, copper, precious metals and platinum-group metals. 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. Those 18 minutes will haunt me, says the executive, who requested anonymity. Our nickel operations are in Canada, Australia, Norway, and New . 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. The company had a further 120,000 tons or more in short positions off the exchange, in bilateral deals with such banks as JPMorgan Chase & Co. and Standard Chartered Plc. The giant commodity traderGlencore Plcalso had a position on the LME that would benefit from rising prices. Excellent coverage of an earth-shaking event. It decided to cancel all the trades that took place on Tuesday morning some $US3.9 billion of them. Most market participants expect nickel prices to come back down once the crisis around Xiangs position has been resolved. Yet the firm's lucrative . 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. When prices rose above $20,000 he would consider shorting nickel, the people said, because his production costs in Indonesia were as low as $10,000 a ton. While Russias nickel exports havent been targeted by sanctions, US and European buyers have nonetheless sought alternatives to Russian sources. MINK. The nickel market was anything but calm. . 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. Others took to social media. Xiang has told his banks and brokers that he still thinks the nickel price will fall andwants to keephis short position, Bloomberg reported on Thursday, citing people familiar with the matter. People familiar with the discussions said the exchange would ideally prefer to wait until Xiang has reached a resolution with his banks and brokers. INF News.com. ICP( B2-20050348 (AVSP):2014002, By signing up, you agree to our Terms, Privacy Policy. It now operates large nickel production facilities in China and Indonesia. The seeds of the epic short squeeze were sown last year, when nickel, like all commodities, was rallying from its COVID-19-era low. Strong passwords include numbers,letters,and special characters. Tsingshan accounted for about half that amount. But the obvious consequence of so much nickel hitting the market, he believed, would be a fall in its price. Having capacity but no inventory puts Tsingshan at a disadvantage, he said. The company had plans to produce 850,000 tonnes of nickel in 2022, an increase of 40 per cent in a year, says a person briefed on them. A Glencore spokesman declined to comment. 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. Pemex Reports $9.4 Billion Loss as AMLO Fails to Revive Output . The two major mining companies in Sudbury are working together to . The metal is found in all our homes as a key ingredient of stainless steel. When Norilsk Nickel left the Western markets, Glencore became its main substitute for nonferrous metals. articles a month for anyone to read, even non-subscribers! Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. Mid Term. Now they had to pay big margin calls on the exchange while receiving no margin from their client. It was 5:42 a.m. on March 8 in London when the nickel market broke. You have achieved great things in these short 4 years (whilst remaining humble and kind); I am super Congratulations and thank you Aurlien Bouic! Poseidon Nickel stock opened the day at A$0.04 after a previous close of A$0.04. But while the short squeeze has weighed on Tsingshans short-term cash flows, strong nickel prices are to its advantage in the long run. Baar, Zug, Switzerland. Elon Musk wanted to buy 10-20% of Glencore, but refused to. Tsingshan Group placed a short nickel order, and the matter of being shorted by the opponent was brushed off. 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. Complete Glencore PLC ADR stock information by Barron's. View real-time GLNCY stock price and news, along with industry-best analysis. 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. Then on March 7, nickels price began its parabolic ascent, surging from $US30,000 a tonne to more than $US50,000. From a contractual perspective, you may be . Short Term. Golf's Greatest Holes: Golfing legend Paul McGinley takes television presenter Chris Hollins on a tour of the best golf courses in Ireland and Northern Ireland. 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. The paper loss stood at $8 billion on Monday, before violent moves in nickel prices led the London Metal Exchange to suspend trading in the metal on Tuesday, one of the people said. For a while, it wasunclear which view of the market would prevail. The dollar hit a one-week low earlier Wednesday after China's yuan gained. Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. People forgot that this isnt a video game retailer; its an important physical commodity.. 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. Login. He was awakened by a phone call at 5.30am. Its still unclear how much of a risk the nickel rally and a cash drain from topping up margin payments pose to the company. Were sorry, this feature is currently unavailable. Tsingshan is an excellent Chinese enterprise.. Follow the topics, people and companies that matter to you. 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. But today things have reversed, that is, Tsingshan Group has prepared 200,000 . 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. 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. Not everyone shared his pessimism about prices. By now, the entire nickel industry was in crisis. Vale is the world's largest producer of nickel, one of the most versatile metals in existence. Others in the market may also push up prices anticipating that short covering. Xiang was aware of flaws in his strategy, people familiar with the matter said. Xiang didnt believe the rally would last. He blamed foreigners making some moves for nickels price spike in an interview with Chinese news outlet Yicai. 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