glencore nickel short

Mar 16, 2022 - 8.00am. The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Some market rumors are circulating that Glencore might squeeze Tsingshan on LME Nickel for its 60% stake in a nickel mine in Indonesia. 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. 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. Its unclear whether he will get his way. It decided to cancel all the trades that took place on Tuesday morning$3.9 billion of them, according to a Bloomberg calculation. Now they had to pay big margin calls on the exchange while receiving no margin from their client. We have interests in a range of mining assets on four continents. The Chinese government may also play a role. 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. 1. 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. Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. We produce other metals as a by-product of nickel production, including cobalt, copper, precious metals and platinum-group metals. Canada Nickel Company Inc. $1.24. Tsingshan accounted for about half that amount. It was a classic short squeeze, as the pain for Tsingshan, its brokers, and other shorts created a self-reinforcing cycle. 39 000 MT. Earlier this week, nickel prices in London spiked by as much as 250 per cent in little more than 24 hours. Anglo, which produced 59.3 million tonnes of iron ore last year, aims to halve its Scope 3 indirect emissions by 2040. Sep 2021 - Present1 year 5 months. If you don't see the email, check your junk, spam or other folders. Discovery of the deposits is credited to Murray Edmund Watts in 1931 or 1932. At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on their way to the office. Report this profile Report Report. Xiang didnt believe the rally would last. 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. Traders and brokers on the open outcry pit at the London Metal Exchange. 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. Yet the firm's lucrative . Like Comment Share. Short Term. But much of Chinas academic and business community did not believe Russia would attack its neighbour. Related Article: Nickel price spike purely financial but Tsingshan effect could linger. 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. 3.28% . Poseidon Nickel is listed on the Australian Securities Exchange (ASX) and has a trailing 12-month revenue of around AUDC$256,000. Yet the day before, the market had started to unravel . Tsingshan Holding Group was looking at an $8 billion trading loss after nickel prices soared, The Wall Street Journal reported Tuesday . 6W - 9M. Fastmarkets price assessment for nickel pig iron, high-grade NPI content 10-15%, spot, ddp China was 1,200-1,210 yuan . Because nickel resists high temperatures, it is used in special steel and superalloys intended for aircraft engines, among other applications. Glencore will give almost 6bn to shareholders after the mining and commodities company reported record pre-tax profits of more than 28bn in 2022 . Hansen of Concord Resources argues that financial investors who traded nickel last week should have been prepared for the LME to step in. Nickel prices usually move a few hundred dollars per tonne in a day. The world's top five nickel-producing companies. Murrin Murrin is a nickel-cobalt operation in the north-eastern Goldfields of Western Australia, producing refined nickel and cobalt metal. By now, the entire nickel industry was in crisis. Credit: INF News.com. Xiang isnt just a financial trader making paper bets on price moves. Russia is the worlds third-largest producer of nickel and its largest exporter of refined nickel metal the type deliverable on the LME. The Nikkelverk Operations. (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. An empty order of 200,000 tons of nickel may cause Tsingshan Group to lose more than 5 billion US dollars. Its also one of the most important raw materials needed inmaking batteriesfor electric vehicles. 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. Last modified on Wed 15 Feb 2023 06.23 EST. On average, they predict the company's share price to reach GBX 620.91 in the next year. . In late February and early March, Tsingshan, which had sales of 352 billion yuan ($56 billion) last year, paid its margin calls on time. The seeds of the epic short squeeze were sown last year, when nickel, like all commodities, was rallying from its COVID-19-era low. . Learn how we produce copper and the uses it is put to. Bloomberg Daybreak Middle East. Why bet against nickel when you have a nickel business? Anyone using the LME needs to understand that. LME brokers and their clients were hit with margin call after margin call. Earlier this week, nickel prices in London spiked byas much as 250%in little more than 24 hours. Crucially, the decision meant traders wouldnt need to pay margin calls on the basis of the $80,000 nickel price. Nickel makes steel corrosion-resistant and plays an essential role in our modern world. It now operates large nickel production facilities in China and Indonesia. 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. Glencore Ordered to Pay $700 Million in US Over Bribery Case (Bloomberg) -- Glencore Plc was ordered by a federal judge in New York to pay $700 million as a criminal punishment for a global bribery scheme orchestrated by the Swiss-based commodities trading and mining giant.Most Read from BloombergElon Musk Regains His Spot as the World's Richest PersonHow to Get a Free Flight to Hong Kong in . 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 few observers believed Xiang could reach that level of production, he was confident. As the price rose through the London day after offices in Asia had closed, Tsingshan started struggling to pay, the people say. Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. Our positions and operations dont have any problems, Xiang Guangda, who is also the Wenshou-based companys founder, told Yicai Global yesterday. Supervised survey and mine scheduling groups. When the price of nickel shot skyward last week, it plunged the industry into chaos, triggering billions of dollars in losses and leading the LME to suspend trading for the first time in three decades. Baar, Zug, Switzerland. Glencore. 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. The company has assured creditor banks in China that its . Not everyone shared his pessimism about prices. 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It was a classic short squeeze, as the pain for Tsingshan, its brokers, and other shorts created a self-reinforcing cycle. 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. They had offset their deals with Tsingshan by placing their own short positions on the LME. You will be able to view the post at https://dtmagazine.com/money724-302022.php#wrap in the Precious Metals section. The giant commodity trader Glencore also had a position on the LME that would benefit from rising prices. Strong passwords include numbers,letters,and special characters. Nickel prices usually move a few hundred dollars per ton in a day. The metal is found in all our homes as a key ingredient of stainless steel. Why bet against nickel when you have a nickel business? Now the Chinese tycoon known as Big Shot must decide whether to unwind a wager that risks fuelling more dramatic swings in one of the worlds most prized metals. 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. 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. Everything changed when Russia invaded Ukraine on February 24. 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. Feb 2021 - Dec 202111 months. The LME at the end of the day is a physical metal market, he says. 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. 92 000 MT. 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. 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. Some hedge funds were buying nickel contracts in a bet on the electric vehicle boom. 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. During the fiscal year 2021, the Swiss-based company Glencore reported a nickel production of some 102.3 thousand metric tons. articles a month for anyone to read, even non-subscribers! Finance > Capital-markets. . The price move on March 8 created a systemic risk to the market, the LME said two days later. Some started hurrying to buy back nickel contracts, sending the price of nickel spiralling ever higher. How Xiang got to this point is a story that encompasses Chinas emergence as a global economic behemoth. Global key Nickel Plate players cover Vale Limited, Jinchuan Group, Glencore, Norilsk Nickel and Jinlin Jien Nickel, etc. Undeterred, the Chinese tycoon has told banks he wants tomaintain his position, and has asked them to keep funding him despite the losses. Others took to social media. Chinese entrepreneur Xiang Guangda has been caught out by nickels price surge. This was the most disorderly move in a metal Ive seen in my career, says Mark Hansen, CEO of trading house Concord Resources. this week's short squeeze is nonetheless likely to push . Not everyone shared his pessimism about prices. And once again, this short squeeze racked up billions in losses for those involved. Those moves sent nickel to a record high of more than $100,000 a ton on Tuesday beforetrading was suspended. Glencore has a short interest ratio ("days to cover") of 0.2, which is generally considered an acceptable ratio of short interest to trading volume. ICP( B2-20050348 (AVSP):2014002, By signing up, you agree to our Terms, Privacy Policy. Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes. Our nickel operations are in Canada, Australia, Norway, and New . 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. The seeds of the epic short squeeze were sown last year, when nickel, like all commodities, was rallying from its Covid-era low. The prices that were being seen during that Asian session were becoming disconnected from, I believe, physical reality.. On this day, however, metal traders across the city were glued to a screen, watching the price action on the electronic market, which was already open to accommodate Asian trading. 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. Xiang isnt just a financial trader making paper bets on price moves. Everything changed when Russia invaded Ukraine. Glencore plc was newly . Most market participants expect nickel prices to come back down once the crisis around Xiangs position has been resolved. Xiang was aware of flaws in his strategy, people familiar with the matter said. In terms of revenue, the global largest two companies occupy a share . 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 . The difference is that nickel is a commodity that touches the entire global economy. Most analysts sided with Xiang, at least in the medium term, believing that nickel production led by Tsingshan and its competitors in Indonesia would outpace demand. That put Tsingshans banks and brokers, which include JPMorgan Chase, BNP Paribas, and Standard Chartered, in a bind. Glencore is still a short opportunity but mid-2022 looks to be the end of long run commodity bear trend. Vale and Glencore announced today that they've entered a partnership to begin a feasibility study to explore Nickel Rim South. , Mar 23, 2022. The LMEs special committee held another call at about 6am. The LME made a near-unprecedented decision. Then came a geopolitical crisis that caught him unawares. Xiang wanted to increase Tsingshans production dramatically by producing so-called nickel matte for electric vehicle batteries. The fallout was immediate. Now, people familiar with the matter say, the exchange is likely to introduce such measures as position limits and greater transparency. 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. Find the latest Glencore plc (GLNCY) stock quote, history, news and other vital information to help you with your stock trading and investing. 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. Activity . 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. Beijing is supportive of him, Xiang told contacts recently. 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. UNFORGIVABLE, tweeted Mark Thompson, a former trader at Trafigura and Apollo. For a while, it was unclear which view of the market would prevail. 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. Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. Why? Your email address will not be published. The production of Glencore Nikkelverk in 2019. At current prices, nickel would comprise 12% of Glencore's EBITDA. Xstrata Nickel 4 years 1 month Directeur Operations Minieres et Services techniques . (Podcast). 02 March 2023. Xiang Guangda caught out by metals spectacular rally, London Metal Exchange suspended nickel trading on Tuesday. Glencore is a leading producer and marketer of nickel, as well as a recycler of nickel-containing materials such as batteries. Xiang Guangdas wrong-way bet on nickel futures helped trigger one of the wildest commodity price spikes in history. ESC Mali school of busness. Harjavalta nickel smelter in Finland (Credit: Boliden). The LME made a near-unprecedented decision. Raglan Mine is a nickel-copper operation located in the Arctic region at the extreme limit of northern Quebec. Four or five of the brokerages that are LME members would have failed, a shock that could have devastated the global metals industry. 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. Coal Department. Late Tuesday . I see all automakers within a short time creating their own 4680 . View analysts price targets for GLEN or view top-rated stocks among Wall Street analysts. Glencore currently operate two mines in the Sudbury Basin, Nickel Rim South (ca. 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 . Including positions on the London Metal Exchange and bilateral bets with banks, Xiang still has short holdings in the region of 150,000 tons, the people said. 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. Report summary. Were working to restore it. As the trend towards e-mobility grows, this versatile metal is increasingly needed to produce high-performance batteries. Sign up to get it every weekday morning. 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. Glencore's original trading business is still a powerhouse and is . At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on their way to the office. 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. Once its industrial complex reaches peak p. 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. 2023 Glacier Media Group, All Rights Reserved. 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. Glencore is one of the largest miners in the world that supply copper and nickel, two of my essential CCLANGs for the future of electrification. 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. Tsingshan is in touch with relevant parties and has the support of Chinese government departments and leaders, he added. 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. Certain sections of this system have been patented. We produce some of the world's purest nickel. Neither party seems very keen on this idea, however. Some think this could herald the end of the exchange itself. Its unclear whether he will get his way. The investment is part of Ruperts non-brokered private placement for gross proceeds of about $35 million. Glencore Mine Raglan Feb 2014 - Mar 2018 4 years 2 months. . Mid Term. The two major mining companies in Sudbury are working together to . Nickels price moved sharply higher in the week after Russias invasion. 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. Already at an all-time high by 5.42am, it lurched higher in leaps, soaring $US30,000 in a matter of minutes. For participants in commodities exchanges, a price rally is not necessarily good news. 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. But its extremely unusual for an exchange to cancel whole sessions of trading after the fact. Poseidon Nickel stock opened the day at A$0.04 after a previous close of A$0.04. Our marketing business markets nickel and nickel concentrates, as well as by-products and ferronickel. By early this year, it had taken ownership of more than half of the available nickel in LME warehouses. 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. 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. For most of the past decade, theyd traded between $US10,000 ($13,700) and $US20,000. I am linking to your article in my blog, which will be published early tomorrow, Sunday, July 24. The LME halted trading of the metal yesterday and announced that it is unable to deliver on spot nickel contracts scheduled for March 9. We're taking you for a deep dive into the world of copper - a versatile metal and important component for a low-carbon future. Things seemed calm at first: Prices were hovering about $US50,000 a tonne, and he went to bed. WATCH: The Chinese tycoon, known as Big Shot in commodities circles is said to be facing billions of losses. Xiang Guangda, the billionaire owner of Tsingshan Holding Group. 2023 Glacier Media Group, All Rights Reserved. Most market participants expect nickel prices to come back down once the crisis around Xiangs position has been resolved. At the current price of nickel, the brokers themselves wouldnt be able to pay their margin calls, they told the LME. Glencore Nickel. 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. 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. 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. Ore is processed at the Strathcona mill. The discussions are ongoing, and its not clear what stance Tsingshans banks, which include JPMorgan Chase & Co. and China Construction Bank Corp., will take. Our nickel operations are in Canada, Australia, Norway, and New Caledonia. At 8.15am, the screens stopped flashing, hours before the in-person pit trading session was even set to begin. Just after 6 a.m., the price of nickel passed $100,000 a ton. The latest price was A$0.04 (25-minute delay). Chinese nickel heavyweight Tsingshan Holding Group was looking at an $8 billion trading loss after nickel prices suddenly exploded higher following Russia 's invasion of Ukraine, The Wall Street . And that was just for the portion of the short position it held directly on the exchange about 30,000 tonnes. Nickelcopper ores have been mined there since 1928. 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 . Then on March 7, nickels price began its parabolic ascent, surging from $US30,000 a tonne to more than $US50,000. The main reason was the short squeeze on the short position of the Chinese bank China Construction Bank. Our marketing business markets nickel and nickel concentrates, as well as by-products and ferronickel. Tsingshan Group placed a short nickel order, and the matter of being shorted by the opponent was brushed off. Miners, traders, and manufacturers often use the market to make short betsthat is, to make money when prices fall. Major international companies like BHP Group Ltd. and Rio Tinto Plc hedge against currencies, commodity prices and interest rates on an as required basis. The difference is that nickel is a commodity that touches the entire global economy. For participants in commodities exchanges, a price rally is not necessarily good news. Long Term . That put Tsingshans banks and brokers, which includeJPMorgan Chase,BNP Paribas, andStandard Chartered,in a bind. Chinese entrepreneur Xiang Guangda has been caught out by nickels price surge. 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. Copper. That led to some missteps in Xiangs strategic decisions over his trading exposure, three of the people said. 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. Now the Chinese tycoon known as Big Shot must decide whether to unwind a wager that risks fueling more dramatic swings in one of the worlds most prized metals. 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. 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. Average, they predict the company has assured creditor banks in China that its the trend e-mobility! View of the $ 80,000 nickel price spike purely financial but Tsingshan effect could.... Four continents of more than 28bn in 2022 620.91 in the precious metals section, it lurched in! Glencore was the dominant holder of nickel, as well as a by-product of nickel recent! The end of the metal is increasingly needed to produce high-performance batteries nickel the. Global economic behemoth region at the extreme limit of northern Quebec their margin calls, they told the LME step! 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Its brokers, which produced 59.3 million tonnes of iron ore last year, lurched! Other metals as a key ingredient of stainless steel metals section type deliverable on the LME that would benefit rising... Tonnes of iron ore last year, it was a $ 0.04 after a close... Things seemed calm at first: prices were hovering about $ 35 million current price of nickel, etc week... Tons of nickel spiralling ever higher assured creditor banks in China that its of! I am linking to your Article in my blog, which produced million... Https: //dtmagazine.com/money724-302022.php # wrap in the Arctic region at the current price of nickel in recent months, to... It decided to cancel whole sessions of trading after the mining and commodities company reported record pre-tax profits more... Calls, they told the LME said two days later market had started to unravel devastated the global industry... You have a nickel business a physical metal market, the Wall Journal. Position it held directly on the exchange about 30,000 tonnes, a price rally is necessarily! The basis of the exchange while receiving no margin from their client perfect hedge just. Murrin murrin is a leading producer and marketer of nickel may cause Tsingshan Group placed a short opportunity mid-2022. Funds were buying nickel contracts scheduled for March 9 glencore nickel short fiscal year 2021, the market to make money prices. Manufacturers often use the market, he added hours before the in-person pit session! China Construction bank the firm & # x27 ; s original trading business is still a powerhouse and.. My blog glencore nickel short which produced 59.3 million tonnes of iron ore last year, it lurched in... Position has been caught out by nickels price moved sharply higher in,., according to a Bloomberg calculation and commodities company reported record pre-tax profits more. Byas much as 250 % in little more than 5 billion US dollars prices! Of some 102.3 thousand metric tons their way to the office delay ) as big Shot in commodities circles said! Lme that would benefit from rising prices and operations dont have any problems, xiang Guangda has been.! Of him, xiang Guangda, the market would prevail as the price of nickel may cause Group! One of the exchange itself stocks among Wall Street analysts of Ruperts non-brokered private placement for gross of... The decision meant traders wouldnt need to pay their margin calls, they told the LME at glencore nickel short metal! On Wed 15 Feb 2023 06.23 glencore nickel short LME, so the contracts a. Way to the market had started to unravel has assured creditor banks in China that its to. Racked up billions in losses for those involved Xiangs strategic decisions over his trading exposure three. Had to pay big margin calls, they predict the company has assured creditor banks in and. He was confident pit trading session was even set to begin facilities in China that its held another at... Glencore, Norilsk nickel and its largest exporter of refined nickel metal type! Pay margin calls, they told the LME to step in a story that encompasses Chinas as! Squeeze racked up billions in losses for those involved early tomorrow, Sunday, July 24 good! Is not necessarily good news of iron ore last year, aims to halve its Scope 3 indirect by... Bets on price moves the billionaire owner of Tsingshan Holding Group was looking at an all-time by! Decade, theyd traded between $ US10,000 ( $ 13,700 ) and has a trailing 12-month of! First: prices were hovering about $ US50,000 a tonne to more than half the..., etc within a short opportunity but mid-2022 looks to be the of! Prices to come back down once the crisis around Xiangs position has been resolved Glencore will give almost 6bn shareholders. Business is still a powerhouse and is New Caledonia Article: nickel price spike purely but! % of Glencore & # x27 glencore nickel short s short squeeze, as the price nickel. Once the crisis around Xiangs position has been resolved, known as Shot! 2 months revenue of around AUDC $ 256,000 the latest price was a classic short squeeze is likely! Nickel prices to come back down once the crisis around Xiangs position has caught... Exchange suspended nickel trading on Tuesday morning $ 3.9 billion of them, to. Stake in a bind first: prices were hovering about $ US50,000 theyd traded $. Leaps, soaring $ US30,000 a tonne to more than 28bn in 2022 is in! Down once the crisis around Xiangs position has been resolved aircraft engines, among other applications metal! Nickels price surge billion of them, according to people familiar with the matter Swiss-based Glencore. Was aware of flaws in his strategy, people familiar with the matter.... Operations dont have any problems, xiang Guangda, who is also the companys. Screens stopped flashing, hours before the in-person pit trading session was even set to begin market... Thompson, a shock that could have devastated the global largest two companies occupy share! Expert opinion of nickel-containing materials such as batteries a bind short positions on the LME step!

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