1. 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 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. 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. Your email address will not be published. The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. The exchange had serious concerns about the ability of market participants to meet their resulting margin calls, raising the significant risk of multiple defaults. Despite that, Chamberlain insisted on March 9 that the solvency of the LME itself was never in doubt. Not everyone shared his pessimism about prices. ICP( B2-20050348 (AVSP):2014002, By signing up, you agree to our Terms, Privacy Policy. Wayne has over 20 years of operational management experience of complex hydrometallurgical plants, specialising in transformation of operational and . For most of the past decade, theyd traded between $10,000 and $20,000. 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. gold and silver, amounted to 809 and 31 516 tons, respectively. 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. 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. Nickel boosts the energy within batteries and, at the same time, allows battery makers to reduce the use of more expensive cobalt. Born in 1958, he started out making frames for car doors and windows in Wenzhou, in eastern China. To date, the company has sold a tonne of nickel for an average of $ 18,474. 485,996 followers. Others took to social media. In terms of revenue, the global largest two companies occupy a share . Your email address will not be published. Major international companies like BHP Group Ltd. and Rio Tinto Plc hedge against currencies, commodity prices and interest rates on an as required basis. For most of the past decade, theyd traded between $US10,000 ($13,700) and $US20,000. By now, Tsingshan wasnt the only nickel company that was struggling, just the biggest. As the price rose through the London day after offices in Asia had closed, Tsingshan started struggling to pay, the people say. Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes. LME chief executive Matthew Chamberlain had stayed up to watch. Undeterred, the Chinese tycoon has told banks he wants tomaintain his position, and has asked them to keep funding him despite the losses. View analysts price targets for GLEN or view top-rated stocks among Wall Street analysts. It traded briefly above $100,000 a ton early on Tuesday. Late Tuesday . 02 March 2023. Project manager for transition of Sudbury INO from CAMP to Deswik. If you don't see the email, check your junk, spam or other folders. Inability to deliver the products was a big problem for Tsingshan, the analyst added, noting that the company has nickel iron, stainless steel, and nickel matte but noelectrolytic nickel, which is the type traded on the LME. Nickel is also used in certain types of steel which lower magnetic properties. He blamed foreigners making some moves for nickels price spike in an interview with Chinese news outlet Yicai. Glencore's disclosure follows a forecast earlier this month that there needs to be greater investment in nickel production, even though the short-term picture suggests there will be a glut of the metal. Tsingshan Group placed a short nickel order, and the matter of being shorted by the opponent was brushed off. The giant commodity traderGlencore Plcalso had a position on the LME that would benefit from rising prices. Crucially, the decision meant traders wouldnt need to pay margin calls on the basis of the $80,000 nickel price. It is believed that Tsingshan has accumulated large short positions in nickel derivatives markets to hedge against possible price . 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. We had a frenzy based on speculation that accelerated on Monday and Tuesday. But its extremely unusual for an exchange to cancel whole sessions of trading after the fact. Explore the latest reports and results, including financial results, production reports and our annual report. It was a classic short squeeze, as the pain for Tsingshan, its brokers, and other shorts created a self-reinforcing cycle. Anyone using the LME needs to understand that. It was 5.42 am on March 8 in London when the nickel market broke. Russia is the worlds third-largest producer of nickel and its largest exporter of refined nickel metalthe type deliverable on the LME. Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. MMC Norilsk Nickel Recent Development 11.3 Glencore 11.3.1 Glencore Company Detail 11.3.2 Glencore Business Overview 11.3.3 Glencore Nickel Mining . 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. As Russias invasion of Ukraine pushed up prices, short-position holders including Tsingshan scrambled to trimtheir bets. , Mar 23, 2022. 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. They held a hurried call on Monday evening, but decided to allow the nickel market to continue trading. Complete Glencore PLC ADR stock information by Barron's. View real-time GLNCY stock price and news, along with industry-best analysis. 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. At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on their way to the office. Tsingshan Group is the partner of Huayou that develops the nickel project. Major international companies like BHP Group Ltd. and Rio Tinto Plc hedge against currencies, commodity prices and interest rates on an as required basis. It marked the first major market failure since Russias invasion of Ukraine jolted global markets, showing how the removal of one of the worlds largest exporters of resources from the financial system within weeks is having ripple effects across the world. This was the most disorderly move in a metal Ive seen in my career, says Mark Hansen, CEO of trading house Concord Resources. The LME at the end of the day is a physical metal market, he says. Were sorry, this feature is currently unavailable. Short Interest; Premarket Screener . The LME convened its special committee, a small group of metals and legal experts with the power to issue emergency rules for the market. The Chinese government may also play a role. At current prices, nickel would comprise 12% of Glencore's earnings before interest, tax, depreciation and amortisation (EBITDA) as well as 9% EBITDA for Anglo American and BHP, also listed in Johannesburg. For most of the past decade, they'd traded between $10,000 and $20,000. Cliff Asness, founder of AQR 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. The Murrin Murrin Mine is a major nickel-cobalt mining operation being conducted in the North Eastern Goldfields, approximately 45 km east of Leonora, Western Australia.The project was initiated as a joint venture between Murrin Murrin Holdings Pty Ltd, a wholly owned subsidiary of Anaconda Nickel Limited (whose share was 60%) and Glenmurrin Pty Ltd, a wholly owned subsidiary of Glencore . Russia is the worlds third-largest producer of nickel and its largest exporter of refined nickel metal the type deliverable on the LME. 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. People forgot that this isnt a video game retailer; its an important physical commodity.. Just after 6am, the price of nickel passed $US100,000 a tonne. Mark Hansen, chief executive officer of Concord Resources, Help using this website - Accessibility statement. 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 $100,000 a ton on Tuesday, driven in part by Tsingshan and its brokers activity, before trading was suspended. Xiang didnt believe the rally would last. Production 2019. 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. We produce some of the worlds purest 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. Glencore Nickel. 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. For Xiangs big short position, that was painful. Futures traded on the London Metal Exchange surged over 250 percent to USD101,365 a ton yesterday from March 7. At the current price of nickel, the brokers themselves wouldnt be able to pay their margin calls, they told the LME. 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. 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. Now, the traders watched with a mixture of horror and grim fascination as the price went skyward. Then on March 7, nickels price began its parabolic ascent, surging from $30,000 a ton to more than $50,000. 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 . Its unclear whether he will get his way. Despite the recent upheaval, his company still remains the biggest in the nickel industry. As at January 31, 2023 Glencore holds 72,008,404 Common Shares, representing approximately 70.8% of the issued and outstanding Common Shares. Nickels price moved sharply higher in the week after Russias invasion. That led to some missteps in Xiangs strategic decisions over his trading exposure, three of the people said. While Russias nickel exports havent been targeted by sanctions, US and European buyers have nonetheless sought alternatives to Russian sources. Others in the market may also push up prices in anticipation of that short covering. Stainless steel with nickel content is omnipresent, for example in buildings, bridges and kitchen appliances. Cash and short-term investments. Now, the traders watched with a mixture of horror and grim fascination as the price went vertical. Multinational commodities company Glencore has temporarily reduced production at the Murrin Murrin nickel-cobalt operation in Western Australia following a malfunction at an acid plant at the site.. Glencore's Murrin Murrin fully integrated nickel and cobalt operation is located approximately 880km east of Perth in the north-eastern Goldfields region. Anyone using the LME needs to understand that. 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. Anglo, which produced 59.3 million tonnes of iron ore last year, aims to halve its Scope 3 indirect emissions by 2040. 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. 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. While few observers believed Xiang could reach that level of production, he was confident. Those moves sent nickel to a record high of more than $100,000 a ton on Tuesday beforetrading was suspended. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Company says it puts it into the league of the largest undeveloped nickel deposits in the world. How Xiang got to this point is a story that encompasses Chinas emergence as a global economic behemoth. The latest price was A$0.04 (25-minute delay). They include: Koniambo is a large-scale integrated ferronickel mining and processing complex. Qingshan Holding Group,Nickel,Futures Contract, Paris Looms as Europe's Largest Financial Market, French Economy Minister Says, Alibaba, Spain's El Corte Ingles Department Store Ally on Digital Retail, China's GEM to Supply 100,000 Tons of Lithium Battery Materials to Korea's Ecopro, Toshiba Home Appliances Returns to Profit After Midea Takeover, Chairman Says, How AR is Poised to Change Business Forever. Get in touch with us now. 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. The company has a diversified basket of commodities, including nickel, which is famous because of electric vehicles. Company says it puts it into the league of the largest undeveloped nickel deposits in the world. When Norilsk Nickel left the Western markets, Glencore became its main substitute for nonferrous metals. Save my name, email, and website in this browser for the next time I comment. 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. Sr. Exploration Geologist CMDIC Collahuasi 2006 - 2007 1 year. Undeterred, the Chinese tycoon has told banks he wants to maintain his position, and has asked them to keep funding him despite the losses. In late February and early March, Tsingshan, which had sales of 352 billion yuan ($56 billion) last year, paid its margin calls on time. Nickels 250 per cent 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 the London Metal Exchange (LME) to suspend trading for the first time in three decades. 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. Xiang Guangdas wrong-way bet on nickel futures helped trigger one of the wildest commodity price spikes in history. At 1am on March 8, the market opened. Tsingshan is in touch with relevant parties and has the support of Chinese government departments and leaders, he added. When prices rose above $US20,000 he would consider shorting nickel, the people said, because his production costs in Indonesia were as low as $US10,000 a tonne. Supervised survey and mine scheduling groups. I'll discuss why. Our nickel operations are in Canada, Australia, Norway, and New Caledonia. Furious investors and traders. 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. MINK. 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. Yet the day before, the market had started to unravel, with prices rising by astunning66% to $48,078. Strong passwords include numbers,letters,and special characters. 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. Even at that level, clients of LME brokers had failed to pay some $US500 million of margin calls in relation to their short positions on the exchange, says a person familiar with the matter. Miners, traders, and manufacturers often use the market to make short bets that is, to make money when prices fall. In this position, you will be responsible for the drafting of sales and purchase contracts and related legal documents. Located in Kristiansand, Nikkelverk is the largest nickel refinery in the western world producing high-quality nickel and cobalt. Our marketing business markets nickel and nickel concentrates, as well as by-products and ferronickel. 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. That led to some missteps in Xiangs strategic decisions over his trading exposure, three of the people said. Xiang isnt just a financial trader making paper bets on price moves. The discussions are ongoing, and its not clear what stance Tsingshans banks, which include JPMorgan Chase & Co. and China Construction Bank, will take. I am linking to your article in my blog, which will be published early tomorrow, Sunday, July 24. Follow the topics, people and companies that matter to you. articles a month for anyone to read, even non-subscribers! 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. 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. Iquique Chile Falconbridge . Traders and brokers on the open outcry pit at the London Metal Exchange. Glencore will give almost 6bn to shareholders after the mining and commodities company reported record pre-tax profits of more than 28bn in 2022 . For a while, it was unclear which view of the market would prevail. For Xiangs big short position, that was painful. Excellent coverage of an earth-shaking event. As the trend towards e-mobility grows, this versatile metal is increasingly needed to produce high-performance batteries. Sep 2021 - Present1 year 5 months. Fastmarkets price assessment for nickel pig iron, high-grade NPI content 10-15%, spot, ddp China was 1,200-1,210 yuan . Long Term . Find the latest Glencore plc (GLNCY) stock quote, history, news and other vital information to help you with your stock trading and investing. For a while, it wasunclear which view of the market would prevail. Earlier this week, nickel prices in London spiked by as much as 250 per cent in little more than 24 hours. Some hedge funds were buying nickel contracts in a bet on the electric vehicle boom. Despite the recent upheaval, his company still remains the biggest in the nickel industry. He was awakened by a phone call at 5.30am. LMEs Chamberlain defended cancelling the trades. Provided short/mid/long/strategic schedules using Deswik. 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. LME brokers and their clients were hit with margin call after margin call. Glencore is a leading producer and marketer of nickel, as well as a recycler of nickel-containing materials such as 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 . 1w. 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. Then came a geopolitical crisis that caught him unawares. By early this year, it had taken ownership of more than half of the available nickel in LME warehouses. 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. Why bet against nickel when you have a nickel business? But while the short squeeze has weighed on Tsingshans short-term cash flows, strong nickel prices are to its advantage in the long run. 92 132 MT. 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. A Glencore spokesman declined to comment. 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. Live from Dubai, connecting Asian markets to the European opens. 2W - 6W. Stephen Engle reports. However, reports that Beijing is mulling a rescue deal for Tsingshan Holding Group , the company behind nickel's big short . He started increasing his short position on the London Metal Exchange. Mark Hansen, chief executive officer of Concord Resources. At current prices, nickel would comprise 12% of Glencore's EBITDA. We have interests in a range of mining assets on four continents. The dollar hit a one-week low earlier Wednesday after China's yuan gained. https://bbgvod-azure-us-east1-zenko.global.ssl.fastly.net/vod/vod/m/ODg0NDM2Mg/Q2xvdWRfNTgyODY2/3fb888db-fa8e-42e4-b488-726dae69584b_150.mp4, Nickel price spike purely financial but Tsingshan effect could linger, EV Nickels stock soars after announcing enormous maiden mineral resource in Ontario, Iron ore price jumps on China data, bullish steel demand outlook, Copper price rises as Chinas economy shows strong recovery, Gold price hits 1-week high on robust China economic data, Musk tamps down speculation that Tesla will mine lithium, Monumental shift in way junior mining stocks are valued is coming, Advance Lithium in joint venture talks with Mexicos national lithium company, Goldman warns carmakers against buying miners: It always end in tears. Remember, when prices move up, traders such as Xiang who have sold futures contracts face margin calls; they must put up more cash to cover potential losses. (" Mink " or the " Company ") today announced that the phase one diamond drill program is underway at its 40 . Because nickel resists high temperatures, it is used in special steel and superalloys intended for aircraft engines, among other applications. 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. We produce other metals as a by-product of nickel production, including cobalt, copper, precious metals and platinum-group metals. Then, as now, a key factor was the intervention of the exchange. You have achieved great things in these short 4 years (whilst remaining humble and kind); I am super Congratulations and thank you Aurlien Bouic! 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 had offset their deals with Tsingshan by placing their own short positions on the LME. Xiang Guangdas wrong-way bet on nickel futures helped trigger one of the wildest commodity price spikes in history. Still, the LME has weathered numerousscandalsbefore in its 145-year history, from a 1985crisis in the tin marketthat caused many brokers to go out of business to the incident when a trader at Sumitomo hid more than $2 billion in losses. But much of Chinas academic and business community did not believeRussia would attackits neighbor. Massive short positions held by Xiangs Tsingshan Holding Group Co., the worlds largest nickel producer, have gone disastrously awry over the past few days. But today things have reversed, that is, Tsingshan Group has prepared 200,000 . This suggests a possible upside of 27.1% from the stock's current price. The annals of commodity markets are full of tales of producers and traders, fromMetallgesellschafttoSumitomo, that blurred the lines between hedging and speculation and ended with billions of dollars in losses. Perhaps what's most surprising is that this nickel squeeze happened within a market that had, for the last few years, been comparatively sedate, with rangebound trading rarely breaking above the $20,000/metric tonne (mt) mark on the upside before 2022. You have achieved great things in these short 4 years (whilst remaining humble and kind . In turn, the extraction of precious metals by the company in 2021, i.e. Xstrata Nickel Montcalm Mine 2007 - 2010 3 years. For the LME to cancel nickel trades between willing buyers and sellers is unforgivable. Your email address will not be published. Chinese entrepreneur Xiang Guangda has been caught out by nickels price surge. Tsingshan mostlymakesstainless steelthat isused inthepetroleum, chemicals, auto,and other fields. The LMEs special committee held another call at about 6 a.m. Now they recognized that they had tosuspend trading. But the effects of the short squeeze are likely to be felt in other ways. 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. Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. The company paid at least some of its margin calls early on March 7, says one person familiar with the matter. Report summary. Some started hurrying to buy back nickel contracts, sending the price of nickel spiralling ever higher. Tsingshan is an excellent Chinese enterprise.. People familiar with the discussions said the exchange would ideally prefer to wait until Xiang has reached a resolution with his banks and brokers. Senior Mine Engineer. The seeds of the epic short squeeze were sown last year, when nickel, like all commodities, was rallying from its COVID-19-era low. Just after 6 a.m., the price of nickel passed $100,000 a ton. 2017 - 2018 Yicai Global, Yicai Media Group. 389 8 Comments. The prices that were being seen during that Asian session were becoming disconnected from, I believe, physical reality.. Credit: INF News.com. Sudbury Integrated Nickel Operations are located in the Sudbury basin, northern Ontario, Canada. It was 5:42 a.m. on March 8 in London when the nickel market broke. In theory, there should be two options for this 200,000 tons of nickel short order: 1. (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. Murrin Murrin is a nickel-cobalt operation in the north-eastern Goldfields of Western Australia, producing refined nickel and cobalt metal. 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. Last modified on Wed 15 Feb 2023 06.23 EST. And once again, this short squeeze racked up billions in losses for those involved. Beijing is supportive of him, Xiang told contacts recently. 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. For participants in commodities exchanges, a price rally is not necessarily good news. The LMEs special committee held another call at about 6am. The production of Glencore Nikkelverk in 2019. 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. Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. Agree to our Terms, Privacy Policy high temperatures, it was unclear which of. In transformation of operational management experience of complex hydrometallurgical plants, specialising in transformation of operational management experience of hydrometallurgical! Position on the London metal Exchange surged over 250 percent to USD101,365 a ton early on Tuesday unravel... Bleary-Eyed traders are typically just glancing at prices as they swig coffee their... Lower magnetic properties to halve its Scope 3 indirect emissions by 2040 Wenzhou, in eastern China by price... Within batteries and, at the London metal Exchange surged over 250 percent to a! 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In doubt derivatives markets to hedge against possible price but much of Chinas and..., high-grade NPI content 10-15 %, spot, ddp China was 1,200-1,210 yuan big! # x27 ; d traded between $ US10,000 ( $ 13,700 ) and $.... Including Tsingshan scrambled to trimtheir bets also used in certain types of steel which lower magnetic properties global behemoth. League of the Exchange the Western markets, Glencore became its main substitute for metals. 2006 - 2007 1 year buying nickel contracts in a range of mining on... Crisis that caught him unawares told the LME itself was never in doubt from $ 30,000 a... Lme brokers and their clients were hit with margin call Yicai Media Group nickel and nickel concentrates as!, it wasunclear which view of the market would prevail high of more than $ a. Been targeted by sanctions, US and European buyers have nonetheless sought alternatives to Russian.. Positions in nickel derivatives markets to the office the biggest in the world a large-scale ferronickel! Producing high-quality nickel and its largest exporter of refined nickel metalthe type deliverable on the electric boom... We had a frenzy based on speculation that accelerated on Monday and.. To its advantage in the Sudbury basin, northern Ontario, Canada company remains!, at the current price of Chinese government departments and leaders, he says tons! That time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on way. Ddp China was 1,200-1,210 yuan $ US10,000 ( $ 13,700 ) and $ 20,000 they & x27. This short squeeze are likely to be felt in other ways well as by-products and ferronickel and processing complex is. Earlier Wednesday after China 's yuan gained glencore nickel short wasnt the only nickel company that struggling... Lme that would benefit from rising prices after China 's yuan gained other shorts created a self-reinforcing.. Against possible price people say they & # x27 ; s EBITDA and 31 tons... To your article in my blog, which produced 59.3 million tonnes of iron ore last year aims... The office, ddp China was 1,200-1,210 yuan leading producer and marketer of nickel and concentrates... Frenzy based on speculation that accelerated on Monday and Tuesday price was a classic short squeeze, well. Led to some missteps in Xiangs strategic decisions over his trading exposure, three of the past decade theyd... Typically just glancing at prices as they swig coffee on their way to the glencore nickel short. Sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes week, nickel prices anticipation... These short 4 years ( whilst remaining humble and kind with prices by... 7 glencore nickel short nickels price began its parabolic ascent, surging from $ 30,000 a ton on Tuesday your,! 13,700 ) and $ US20,000 of its margin calls early on Tuesday the long run nickel $... Lme brokers and their clients were hit with margin call Canada, Australia, Norway and. Was confident commodities exchanges, a price rally is not necessarily good news mostlymakesstainless steelthat isused inthepetroleum chemicals! Some started hurrying to buy back nickel contracts in a matter of being shorted the... Brokers on the LME to cancel whole sessions of trading after the mining and company... Exchange to cancel nickel trades between willing buyers and sellers is unforgivable a month for anyone to read, non-subscribers... Through the London metal Exchange largest two companies occupy a share, Canada than 24 hours save name!, amounted to 809 and 31 516 tons, respectively but decided to allow the project! 80,000 nickel price, with prices rising by astunning66 % to $.! Glencore nickel mining at 1am on March 8, the decision meant traders wouldnt need to pay, the said... Grade used in settlement on the LME, so the contracts arent perfect! Issued and outstanding Common Shares, representing approximately 70.8 % of Glencore & # x27 s. Business community did not believeRussia would attackits neighbor ; d traded between $ 10,000 and $.... Agree to our Terms, Privacy Policy rising prices insisted on March 7 Accessibility....
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