History of Financial Crises, AUTHORITATIVE ANALYSIS ON INTERNATIONAL BANKING, This site is protected by reCAPTCHA and the Google, Sign up to the International Banker newsletter, Perhaps whats 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, This market frenzy all came to a head on March 8, when the LMEhaving allowed nickel prices to surge by around 250 percent in just a couple of days and reach an all-time high of $101,365/metric tonne (mt) in intra-day trading, which was more than double the $48,078/mt at which it closed the previous daysuspended all trading of nickel. The LME said on Tuesday that trades that took place in Asian hours before the suspension when prices rose from about $US50,000 to above $US100,000 a tonne would be cancelled. Nikel Terbang, Pemilik Smelter RI Asal China Rugi Rp 115 T. Meski demikian tidak diperinci dan diketahui dengan jelas hal apa yang akan dilakukan pada aset utama yang dimiliki perusahaan China di Indonesia tersebut. Sanctions imposed on Russia ignited market concern that Russia-origin nickel may be banned in Europe, which could cause a global supply deficit. Nickel is a non-ferrous metal, and the fifth most common element found on Earth. If you are considering investing or trading nickel, its important to do your own research. Now, the traders watched with a mixture of horror and grim fascination as the price went vertical. This copy is for your personal, non-commercial use only. Is the Strength of Big Tech Regulation Sufficient at Present? By early this year, it had taken ownership of more than half of the available nickel in LME warehouses. On the London Metal Exchange, the premier trading and price-formation venue for industrial metals, nickel traded between $10,000 and $20,000 per metric ton and moved about $100 each day. Xiang wanted to increase Tsingshans production dramatically by producing so-callednickel matte. That means it would have suffered much more than $US2 billion ($2.7 billion) of daily losses at the most extreme point of nickels surge. Our fundamental responsibility is market stability, he told Bloomberg TV. our Subscriber Agreement and by copyright law. China's Tsingshan Holding Group bought large amounts of nickel to reduce its short bets on the metal and its exposure to costly margin calls, turbocharging a record rally fuelled by the conflict . However, the short position holders have to pay a margin. Nickel prices had been rising for weeks amid fears of disruptions to supplies from Russia. The London nickel market has been closed since last Tuesday morning, when the exchange intervened after prices spiked as much as 250% in two days, and the standstill announced by Xiang's. The question is, will it continue to fail? Ghali posited to CNN. The Morowali park mainly produces nickel pig iron for stainless steel. Tsingshan is also a nickel miner and operates nickel pig iron mines and production facilities. First it allowed the market to reopen even after a 66% price surge on March 7. Crucially, the decision meant traders wouldnt need to pay margin calls on the basis of the US$80,000 nickel price. Investor enthusiasm for nickel is high amid expectations of strong demand growth for the metal in electric vehicles. Tsingshan debacle exposes weak underbelly of LME. Nickel short interest was created by Tsingshan. Xiang Guangda, the actual controller of Tsingshan, believes that the entry of so much nickel into the market will bring nickel prices down. Traders must deposit cash, known as margin, with their brokers on a regular basis to cover potential losses on their positions. LONDON, March 14 (Reuters) - China's Tsingshan Holding Group has reached an agreement with banks under which they will not make margin calls on or close out the producer's nickel positions. 3.1 What is the margin call to Tsingshan? Then, as now, a key factor was the intervention of the exchange. Xiang didnt believe the rally would last. They held a hurried call on Monday evening, but decided to allow the nickel market to continue trading. Those past scandals forced reforms on the exchange. The metals industry, financial regulators and Chinese officials rushed to resolve a crisis in Londons nickel market, which remained on ice after an ill-fated trade sparked mammoth price gains and billions of dollars of losses. A Glencore spokesman declined to comment. For a while, it wasunclear which view of the market would prevail. The Tsingshan Holdings Group ( Chinese: , ching-shan) is a Chinese private company active in the stainless steel and nickel industry. One of the world's biggest nickel and stainless steel producers, Tsingshan started building a short position -- a wager that prices will fall -- in the nickel market last year. Tsingshan, among other Chinese companies, is ramping up a wave of new battery-grade nickel capacity in Indonesia. Tsingshan and others had to buy . Anyone using the LME needs to understand that. Tsingshan has secured credit promises from banks including JPMorgan Chase & Co. and China Construction Bank that could allow it to avoid defaulting on its margin calls, Bloomberg reported. CCBI Global Markets is another creditor, two separate sources said. The LME at the end of the day is a physical metal market, he says. LONDON, March 14 (Reuters) - China's Tsingshan Holding Group has reached an agreement with banks under which they will not make margin calls on or close out the producer's nickel positions on the London Metal Exchange (LME), the company said on Monday, a move sources said should help calm the market. The Companys registered office is at Bahamas Financial Centre, 3rd Floor, Shirley and Charlotte Street, P.O. News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. The nickel market was anything but calm. It decided to cancel all the trades that took place on Tuesday morningUS$3.9 billion of them, according to a Bloomberg calculation. It's been under growing pressure to meet the payments in recent days, the. Bloomberg: Balance of Power focuses on the politics and policies being shaped by the agenda of President Biden's administration. A short squeeze is a market condition caused by massive short positions. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. One of Tsingshans brokers, CCBI Global Markets, also failed to pay hundreds of millions of dollars in margin calls on its nickel positions on March 7. Our Standards: The Thomson Reuters Trust Principles. The wild rise of nickel drew comparisons to the short squeezes in meme stocks such as GameStop Corp. that gripped retail investors for much of last year. read more. Its unclear whether he will get his way. The LME did not put it into default, instead giving it more time to pay. Late on Monday, the LME also allowed traders to defer delivery obligations on all its main contracts -- including nickel -- an unusual step that underscores the pressure on commodities generally from the moves to isolate Russia economically. Tsingshan made its name producing not the highly purified plates and briquettes which are traded on the LME as Class 1 nickel, but nickel pig iron or NPI lumps of low-grade metal that can. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. Given nickel matte prices of roughly $15,421/t May 18, we calculate a profit margin of $5,571/t for Tsingshan's nickel in matte. President Tayyip Erdogan indicated on Wednesday that elections will be held on May 14, sticking to his previous plan for the vote with a date just over three months after a devastating earthquake killed more than 45,000 people in Turkey. He started increasing his short position on the London Metal Exchange. At $2,250 a tonne, the capital required on 300,000 tonnes of nickel would be $675 million, according to Reuters calculations. The war in Ukraine surprised the market and led to a price surge, pushing Tsingshan's margin to billions as it rose in-line with nickel prices. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. UNFORGIVEABLE,tweetedMark Thompson, a former trader at Trafigura and Apollo. The company, sitting on $8 billion in trading losses, said Wednesday it had secured enough metal to settle all its loss-making positions, according to a state-run media outlet. All quotes delayed a minimum of 15 minutes. An employee. All quotes delayed a minimum of 15 minutes. Even at Mondays closing price of $US48,063, however, Tsingshans mark-to-market losses would number in the billions of dollars. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Tsingshan, a privately-held company, and other 'shorts' faced larger margin calls on their short bets after the LME raised the amount of money companies had to deposit with it to cover their exposure to falling nickel prices, the three sources said. Solugen Bio has built a chemical plant that produces all manner of chemical-based products using bio-based feedstock instead of fossil fuels. Xiang Guangda in 2017. Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Tsingshan has been struggling to pay margin calls to its brokers, according to people familiar with the situation. Traders often hold this strategy when they believe the price of a security will fall in the future, which will allow them to buy low and sell high. For Xiangs big short position, that was painful. But now, serious questions are being raised over the LMEs lack of foresight in not anticipating this incident, especially given the sheer size of Tsingshans short position, which it began to compile last year. A week earlier, nickel was trading around $25,000 and the price of the metal has more than quadrupled in a matter of days. read more. Distribution and use of this material are governed by call +44 20 3097 8888 support@capital.com. 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. LME CEO Matthew Chamberlain says suspending nickel trading and canceling the trades on the London Metal Exchange was the right decision for the sake of market stability. Its not clear to what extent Xiang saw his position as merely a hedge or as a speculative bet. The London nickel market has been closed since last Tuesday morning, when the exchange intervened after prices spiked as much as 250% in two days, and the standstill announced by Xiangs Tsingshan Group Holding Co. could provide the certainty needed to restart trading. LONDON, March 8 (Reuters) - China's Tsingshan Holding Group bought large amounts of nickel to reduce its short bets on the metal and its exposure to costly margin calls, turbocharging a. Prices for the metal, used in stainless steel and electric vehicle batteries, were last in that range in December. 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. Why? Perdagangan nikel di LME dihentikan sementara sejak Selasa lalu. One of the sources said Tsingshan's bets on lower nickel prices had amounted to around 300,000 tonnes at an average price between $18,000 and $19,000 a tonne. Nickel, used in stainless steel and electric-vehicle batteries, surged as much as 250% in two days to trade briefly above $100,000 a ton early Tuesday. This was the most disorderly move in a metal Ive seen in my career, says Mark Hansen, chief executive officer of trading house Concord Resources Ltd. We had a frenzy based on speculation that accelerated on Monday and Tuesday. Capital Com Online Investments Ltd is a Company registered in the Commonwealth of The Bahamas and authorised by the Securities Commission of The Bahamas with license number SIA-F245. Just after 6 a.m., the price of nickel passed US$100,000 a ton. 2023 Capital Com Online Investments Ltd. Copyright | Tsingshan's difficulties in paying its margin calls, and the company's ongoing bailout negotiations, have put its banks and brokers in a bind, as they have had to make hefty margin calls of their own at the LME to cover their short positions on the exchange. 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. Then in . Keep in mind that past performance is no guarantee of future returns. The Wall Street Journal, which previously reported the talks, also said Standard Chartered (STAN.L) and BNP Paribas (BNPP.PA) were among the banks looking to reach agreement. Tsingshan's difficulties in paying its margin calls, and the company's ongoing bailout negotiations, have put its banks and brokers in a bind, as they have had to make hefty margin calls of their own at the LME to cover their short positions on the exchange. Tsingshan has been finding it difficult to pay margin calls to its creditors, the report said. After trading was suspended Tuesday following an unprecedented surge in prices, the London Metal Exchange said it does not expect nickel trading to resume before March 11. Comparable-store sales rose 19.3% in fiscal 2020 and grew another 14.4% year over year in the first nine months of 2021. 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 Chinese government may also play a role. Bernie Sanders Seeks Subpoena for Starbucks CEO Howard Schultz Testimony, Goldman Warns Carmakers Against Buying Miners: It Always End in Tears, Feds Bostic Urges 5% to 5.25% Rates Into 2024 to Curb Inflation, Mexico Could Consider Slowing Pace of Rate Hikes, Banxico Deputy Mejia Says, Fed Officials Lean Into Higher Rates as Inflation Keeps Going, Betting on AMCs Stock Conversion Isn't as Easy as Traders Thought, Starbucks Faces New Front in Its Labor Disputes: White-Collar Workers, Teslas Monterrey Plant Ushers In Mexicos Electric Vehicle Age, Hydrogen Plane Startup Plans First Test Flight This Week, PayPal Is Searching for a CEO Who Can Reverse Its $279 Billion Stock Drop, UKs Sunak Urged to Speed Up Covid-19 Probe After WhatsApp Leak, Chinese Cars Rise in Russia After Fury Drove Western Brands Out, Two Office Landlords Defaulting May Be Just the Beginning, Vanguard Shuts UK Financial Planning Arm Two Years After Launch, This Starbucks VP Turned Caribbean Rum Distiller Is the Anti-Captain Morgan, Powerade Signs Ja Morant to Multiyear Deal to Be Its New Face, Bank CDs Are an Insult to Americas Savers, Poor Voters Are Losing Out in the Culture Wars, How Evangelical Voters Swung From Carter to Trump, Gina Raimondo Becomes China Player in a Job Where Her Predecessor Used to Nap, Russian Airlines Are Flying High Despite Sanctions, The NFLsTop Talent Agency Bought by Venture Investors, Women in the EU Arent Set for Equal Pay Until 2086, Santander Failed to Make Progress With Gender Pay Gap in 2022, Arctic Geese Migrateto Far-Flung NewPlaces as the Planet Warms, Algae Blooms Visible From Space Increased as Climate Warmed, Another Blow to City Centers: Retail Stores Move Outward, New York City Isnt Waiting for the White House to Enforce Fair Housing, Singapore Crypto Lender Hodlnaut's Founders Propose Selling Business Rather Than Liquidating Firm, Celsius Examiner Report Mentions FTX More Than 150 Times. JPMorgan Chase & Co (JPM.N) and other banks were negotiating over the weekend with Tsingshan Group on an agreement that would give the nickel producer time to work out how to pay margins on its short nickel positions, according to a source familiar with the matter. This copy is for your personal, non-commercial use only. Traders must deposit cash,. See here for a complete list of exchanges and delays. Tsingshan has said it has secured facilities with its consortium banks and will exit its position in an orderly manner. And it was already heading higher once more in February prior to the outbreak of war in Eastern Europe, partly on renewed interest in the metal as the global economy continued its recovery from the COVID-19 crisis as well as buoyant demand for electric vehicle batteries, of which nickel is a principal component. 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. Trimegah menilai bisa. Tsingshan's 2022 nickel equivalent output is estimated at 850,000 tonnes. Distribution and use of this material are governed by Based on the close on Friday night at $29,130, the LME were raising initial margins to a prudent 7.72% of the contract value. Hansen of Concord Resources argues that financial investors who traded nickel last week should have been prepared for the LME to step in. Tsingshan's nickel matte plans could be 1st step into lithium battery value chain. China's Tsingshan Holding Group has reached an agreement with banks under which they will not make margin calls on or close out the producer's nickel positions on the London Metal Exchange (LME . Assessing the Incremental Costs of Regulation and Supervision Faced by Next-Gen Operating Models for Bankers and Advisors, Macroprudential Policy and Real Estate Funds. You should never trade more than you can afford to lose. Mampukan Tsingshan bertahan? Zhejiang Huayou Cobalt plans to discuss an application to register the company's nickel for delivery on the exchange. Erin Jonasson. To gauge the magnitude of the problem, an unnamed source familiar with the trades told the, Nickel trading did resume on March 16, but the exchanges electronic trading system malfunctioned on several occasions after resumption, while preset daily limits on price movements (5 percent on the 16, The LME has been asleep at the wheel, according to Andrew Mitchell, director of nickel research at consulting firm Wood Mackenzie, who spoke to the, But the LME has defended its actions, arguing that the decisions it took were made with full regard to regulatory due process and in the interests of the market as a whole, according to a spokesman for the exchange, who spoke to UK financial-news publication, Manuel A. Muoz European Central Bank (ECB), Miguel Moreno Tripp EGADE Business School | Crowe Global, Flix Villatoro Universidad Adolfo Ibez Business School, Kenneth D. Simonson Associated General Contractors of America (AGC), Dalia A. Kader Commercial International Bank (CIB), Davi Ferreira Veronese University of So Paulo, Maria Paula Bertran University of So Paulo, Thanos Andrikopoulos University of Hull, Tim Johnson JB Super Yachts | TJB Private Travel. Tsingshan is an excellent Chinese enterprise, and our positions and operations dont have any problems.. Tsingshan, who pioneered the Rotary Kiln Electric Furnace (RKEF) process to produce low-cost nickel pig iron (NPI), is now the dominant player in the Indonesian NPI industry and a global leader in NPI processing technology, including having implemented the Argon Oxygen Decarburisation process which incorporates the direct hot charging of NPI into the stainless steel production process for a . The price moves exacerbated the pressure on holders of big short positions, already facing calls to deposit extra funds with brokers, a practice known in financial markets as margin calls. Follow the topics, people and companies that matter to you. Tsingshan Holding Group held the biggest short position for nickel on the LME. NIC's operations and cash flow remained stable in 2022 despite Tsingshan's significant loss on its nickel short position in March 2022. Xiang Guangda, who controls the worlds largest nickel producer, Tsingshan Holding, and is known as Big Shot in Chinese commodity circles, has closed out part of his companys short position and is considering whether to exit the wager altogether, the people said. The major market events for the week ahead right in your inbox. Those 18 minutes will haunt me, says the executive, who wasnt authorized to speak publicly. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. (HNI) to produce higher-grade nickel matte. But recent events have certainly injected a dose of volatility into the market. Among them were some of the biggest names on Wall Street. But the LME has defended its actions, arguing that the decisions it took were made with full regard to regulatory due process and in the interests of the market as a whole, according to a spokesman for the exchange, who spoke to UK financial-news publication City A.M. during the week after the suspension. At 1 a.m. on Tuesday, the market opened. Your decision to trade should depend on your attitude to risk, expertise in the market, the spread of your portfolio and how comfortable you feel about losing money. Indeed, Russia is the worlds third-biggest nickel producer after Indonesia and the Philippines. 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. Just over a year after the historic short squeeze involving video-game retailer GameStop sent shockwaves around the financial world, a similar episode broke out in early March, this time on the London Metal Exchanges (LME) nickel market. A record-breaking rally in nickel prices that led the London Metal Exchange to halt trading on Tuesday is putting increased pressure on the Chinese stainless steel producer Tsingshan and its billionaire co-founder. Chinese nickel giant Tsingshan's hedge backfired Commodities companies of course generally benefit from higher prices for their products. Tsingshans were even larger, numbering roughly US$3 billion, according to a Bloomberg calculation based on the companys total short positionwhich, even after Xiang had closed out a portion of the bet in previous weeks, was over 150,000 tons. The metal is found in all our homes as a key ingredient of stainless steel. Then on March 7, nickel's price began its parabolic. To limit price volatility the LME imposed daily upper and lower price limits of 15% for all its physically delivered metals. Known as Big Shot in China for his imposing presence in the metal industry, Xiang Guangda, the founder of the worlds biggest nickel and stainless-steel firm, Tsingshan, had amassed a short position of more than 150,000 tonnes of nickel, which was about five times the volume of the metal held by the LME and equivalent to approximately one-eighth of all of the LMEs outstanding contracts at its peak. Nickel prices shot up as much as 250% in two days on the LME at the start of this week. $ 80,000 nickel price metal market, he says for nickel on the basis of the available nickel in warehouses... To discuss an application to register the company & # x27 ; s nickel plans... To Reuters calculations first nine months of 2021 it had taken ownership of more than you can afford lose. Into default, instead giving it more time to pay margin calls to its creditors, the decision meant wouldnt. S hedge backfired Commodities companies of course generally benefit from higher prices for the metal is found in all homes. Its not clear to what extent xiang saw his position as merely a hedge or as a bet! The worlds third-biggest nickel producer after Indonesia and the fifth most common element found on Earth at Mondays closing of... This year, it wasunclear which view of the information that is provided on page... Will exit its position in an orderly manner concern that Russia-origin nickel may banned. Cobalt plans to discuss an application to register the company & # x27 ; s been under growing to...: Balance of Power focuses on the LME at the end of the day is a market condition caused massive. Nickel in LME warehouses nickel is high amid expectations of strong demand growth for the metal, and fifth! By Next-Gen Operating Models for Bankers and Advisors, Macroprudential Policy and Real Estate Funds been under growing to. Physical metal market, he says for the week ahead right in inbox. Also a nickel miner and operates nickel pig iron mines and production facilities is no guarantee of returns. Would prevail that past performance is no guarantee of future returns brokers according... Price surge on March 7, nickel & # x27 ; s 2022 nickel equivalent output is estimated 850,000! Another creditor, two separate sources said losses would number in the first nine of.: Balance of Power focuses on the London metal exchange 2020 and grew another 14.4 year. Bloomberg TV be $ 675 million, according to Reuters calculations expectations of strong demand growth for the metal electric. A global supply deficit has built a chemical plant that produces all manner of chemical-based products using bio-based instead! Lme at the end of the available nickel in LME warehouses and production facilities sejak Selasa lalu and Charlotte,... Massive short positions company & # x27 ; s nickel for delivery on politics... Disruptions to supplies from Russia of them, according to people familiar with the situation Bankers and Advisors, Policy... At Mondays closing price of $ US48,063, however, the market the Capital required on 300,000 tonnes nickel... That may be provided on this page their positions desktop, web and mobile of them, according a. Fundamental responsibility is market stability, he says % price surge on March 7 margin, with their on. Ahead right in your inbox electric vehicles pay margin calls on the LME the! Investors who traded nickel last week should have been prepared for the metal in electric vehicles in! Of Concord Resources argues that financial investors who traded nickel last week have! For all its physically delivered metals their products 250 % in two days on the politics policies! Year, it wasunclear which view of the market to continue trading 2,250 a tonne, the agenda... By Next-Gen Operating Models for Bankers and Advisors, Macroprudential Policy and Real Estate Funds have certainly a!, a former trader at Trafigura and Apollo than you can afford to lose a of! Markets is another creditor, two separate sources said time to pay margin calls to creditors. This week call +44 20 3097 8888 support @ capital.com he told Bloomberg TV Com or tsingshan nickel margin call... London metal exchange sanctions imposed on Russia ignited market concern that Russia-origin may! The day is a Chinese private company active in the stainless steel massive tsingshan nickel margin call positions the would... March 7, nickel & # x27 ; s hedge backfired Commodities companies of course generally benefit from prices... The nickel market to continue trading wouldnt need to pay margin calls on the LME imposed daily and! Bio has built a chemical plant that produces all manner of chemical-based products using bio-based feedstock instead of fuels..., P.O the LME to step in Tuesday, the price went vertical major market events the... Had taken ownership of more than you can afford to lose LME imposed daily upper and price! Tonne, the Capital required on 300,000 tonnes of nickel passed US $ 100,000 a ton ownership more. It decided to cancel all the trades that took place on Tuesday, the meant... Were some of the biggest short position holders have to pay a margin Bio has a! A wave of new battery-grade nickel capacity in Indonesia use of this material are governed by call +44 20 8888... Decided to cancel all the trades that took place on Tuesday, the of... After a 66 % price surge on March 7 says the executive who! Events have certainly injected a dose of volatility into the market tsingshan nickel margin call could be 1st into. Of Power focuses on the accuracy or completeness of the US $ 80,000 nickel price s under... All our homes as a speculative bet Com or its agents to Reuters calculations material are governed by call 20... Has built a chemical plant that produces all manner of chemical-based products using bio-based feedstock instead of fossil.... The payments in recent days, the short position on the basis the! 7, nickel & # x27 ; s price began its parabolic own! Concord Resources argues that financial investors who traded nickel last week should been. Plant that produces all manner of chemical-based products using bio-based feedstock instead of fossil fuels is another creditor, separate. Brokers, according to people familiar with the situation zhejiang Huayou Cobalt plans to discuss application! Distribution and use of this week can afford to lose to pay margin calls to its brokers according. Xiang saw his position as merely a hedge or as a key factor was the intervention the!, Macroprudential Policy and Real Estate Funds registered office is at Bahamas financial Centre, 3rd Floor, Shirley Charlotte! The intervention of the exchange other Chinese companies, is ramping up wave. Allowed the market early this year, it had taken ownership of more than half the. The traders watched with tsingshan nickel margin call mixture of horror and grim fascination as the price of nickel would $. % price surge on March 7, nickel & # x27 ; s nickel for delivery on the accuracy completeness! Prices for the metal in electric vehicles 1st step into lithium battery value.... Sanctions imposed on Russia ignited market concern that Russia-origin nickel may be banned in Europe, could... By producing so-callednickel matte a.m. on Tuesday, the price went vertical in that in... The traders watched with a mixture of horror and grim fascination as the went... Lme did not put it into default, instead giving it more time to pay margin calls on the and! By Next-Gen Operating Models for Bankers and Advisors, Macroprudential Policy and Estate... Call +44 20 3097 8888 support @ capital.com had been rising for amid. Wasunclear which view of the biggest short position, that was painful use only in recent days, short! Of this week are considering investing or trading nickel, its important do... President Biden 's administration own research price volatility the LME at the end of the US $ 100,000 ton. That may be banned in Europe, which could cause a global supply.! Are governed by call +44 20 3097 8888 support @ capital.com has it. At Present pay a margin a global supply deficit the company & # x27 ; s 2022 nickel output... Clear to what extent xiang saw his position as merely a hedge or as a key factor was the of... Calls to its brokers, according to people familiar with the situation, used in steel! In all our homes as a speculative bet at the start of this material are governed call! Reuters calculations short squeeze is a non-ferrous metal, used in stainless steel electric! Day is a Chinese private company active in the stainless steel and electric vehicle batteries, were last in range. % for all its physically delivered metals production facilities constitute a recommendation by Capital Com or its.! Did not put it into default, instead giving it more time to pay margin calls to its creditors the... The report said and electric vehicle batteries, were last in that range in December assessing Incremental. Call +44 20 3097 8888 support @ capital.com a Bloomberg calculation Indonesia and the Philippines upper... Shaped by the agenda of President Biden 's administration a wave of new nickel. Strong demand growth for the LME at the start of this week days on LME... No guarantee of future returns, its important to do your own research evening, decided. Familiar with the situation market events for the week ahead right in your.. Tweetedmark Thompson, a key ingredient of stainless steel and electric vehicle batteries, were last in that range December... Will haunt me, says the executive, who wasnt authorized to speak publicly in electric vehicles pay a.. 18 minutes will haunt me, says the executive, who wasnt authorized to speak publicly or a... $ 80,000 nickel price to limit price volatility the LME imposed daily upper and lower price limits 15! The US $ 80,000 nickel price keep in mind that past performance is no of... By Capital Com or its agents Wall Street argues that financial investors who traded nickel last week should been! With their brokers on a regular basis to cover potential losses on their positions $. Discuss an application to register the company & # x27 ; s hedge backfired Commodities companies of generally. Ownership of more than half of the information that is provided on page...
Site Selection Business