For non-personal use or to order multiple copies, please contact 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. Xiang didnt believe the rally would last. The three-month LME nickel prices hit an intra-day high at $101,365 a metric tonne on 8 March 2022. The exchange then retroactively wiped out $3.9 billion worth of transactions made before the suspension to demonstrate that nickel prices had stopped reflecting the underlying physical market. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. 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 difference between trading assets and CFDs. Jack Farchy, Alfred Cang and Mark Burton, Bloomberg News. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. See here for a complete list of exchanges and delays. Today, Tsingshan is the biggest nickel producer in the world, accounting for around 20% of the global market. You should never trade more than you can afford to lose. 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. Terms & Conditions Finance Publishing This copy is for your personal, non-commercial use only. This created an unprecedented LME nickel short squeeze. The LME announced on Friday it was raising margin requirements for nickel contracts by 12.5% to $2,250 a tonne. Nickel prices doubled on Tuesday and briefly rose above a record $100,000 a tonne as banks and brokers rushed to close part of a huge position amassed by Xiang Guangda, the billionaire founder of. Tsingshan accounted for about half that amount. Read on for our analysis on the recent LME nickel short squeeze and the market outlook. ), by sales channel (Direct Channel, Distribution Channel), by player (Shandong Xinhai Technology, Tsingshan Holding Group, Eramet, Linyi Yichen Alloy, Jiangsu Delong Nickel Industry . The contribution of a dab has been 44 million to . 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. Nickel prices have since fallen and the three-month nickel last settled at $23,371/tonne on 3 November. ), by application (Stainless Steel Industry, Electronics Industry, etc. It said the banks agreed not to make margin calls or close out their positions against Tsingshan while the company is resolving its nickel margin and settlement requirements. And never trade money that you cannot afford to lose. Prices for the metal, used in stainless steel and electric vehicle batteries, were last in that range in December. Nickel prices on the LME jumped to record highs above $100,000 a tonne on March 8 as Tsingshan bought large amounts to reduce its short positions in the metal, which is used to make stainless steel and electric vehicle batteries. The major market events for the week ahead right in your inbox. The material provided on this website is for information purposes only and should not be understood as an investment advice. The company paid at least some of its margin calls early on Monday, according to a person familiar with the matter. Its unclear whether he will get his way. Prices exploded, thanks mainly to one companyindeed, one man. Nickel is commonly used in stainless steel production, but is also increasingly utilised in manufacturing batteries for electric vehicles (EVs). Tsingshan sold 200,000 ton March 2023 contracts at price of $20 per kilo. Xiang Guangda in 2017. Traders must deposit cash,. 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. . Weda Bay is becoming a very material contributor to the cash flow of ERAMET and it's a fair view of what is the cash the Company can generate. Tsingshan and the LME declined to comment. The Companys registered office is at Bahamas Financial Centre, 3rd Floor, Shirley and Charlotte Street, P.O. 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. The giant commodity trader Glencore Plc also had a position on the LME that would benefit from rising prices. Nickel prices usually move a few hundred dollars per ton in a day. 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. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. articles a month for anyone to read, even non-subscribers! But the Eastern European conflict also saw sizeable long positions enter the market, including major buyers Volkswagen, Glencore and JPMorgan, which instead drove prices higher. 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. And that was just for the portion of the short position it held directly on the exchangeabout 30,000 tons. The most notable holder of short positions is Tsingshan Holdings - one of the world's largest nickel and stainless steel producers - which is believed to own positions on about 100,000 tons of nickel with paper losses totaling up to $8 billion before the London Metal Exchange halted trading. Tsingshan's 2022 nickel equivalent output is estimated at 850,000 tonnes. Xiang shrugged off suggestions to reduce short positions, Tsingshans nickel short position stood at about 150,000 tons. Those 18 minutes will haunt me, says the executive, who wasnt authorized to speak publicly. Its been under growing pressure to meet the payments in recent days, the people said. 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. An employee. Crucially, the decision meant traders wouldnt need to pay margin calls on the basis of the US$80,000 nickel price. 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. In an earlier interview with Chinese news outlet Yicai, Xiang blamed "foreigners making some moves" for nickel's price spike. Tsingshan was unable meet margin calls and only avoided bankruptcy after . For most of the past decade, theyd traded between US$10,000 and US$20,000. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. We expect the LME nickel price to remain volatile in the near term, as the global nickel market finds equilibrium following recent events, S&Ps Sappor added, warning that an elevated risk of another short squeeze hitting the LME nickel market in the near term continued, given the presence of both a dominant warrant-holding position on available LME stocks and Tsingshans short position. Tsingshan Holdings was founded in 1988 by Xiang Guangda in Wenzhou. Tsingshan Holding Group held the biggest short position for nickel on the LME. Distribution and use of this material are governed by Sanctions imposed on Russia ignited market concern that Russia-origin nickel may be banned in Europe, which could cause a global supply deficit. See here for a complete list of exchanges and delays. Prices doubled to a record above $100,000 per tonne in a matter of hours on Tuesday, prompting the London Metal Exchange (LME) to halt trading. Continue reading your article witha WSJ subscription, Already a member? The Morowali park mainly produces nickel pig iron for stainless steel. The spike was driven in large part by a short squeeze centered on Chinese tycoon Xiang Guangda, who hadamassed a big wagerthat nickel prices would fall through his company Tsingshan Holding Group Co. Is the Strength of Big Tech Regulation Sufficient at Present? Nickel trading resumed on 16 March 2022. Our Standards: The Thomson Reuters Trust Principles. It also doesn't create waste and may help fight the climate crisis. 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. 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. Matthew Chamberlain speaks on "Bloomberg Markets: Europe.". See here for a complete list of exchanges and delays. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. WATCH: Trading on LME is now set to resume Wednesday. For the LME, the future isunclear. Exchanges. 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. 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. If the market moves against those positions, they receive a margin call requesting further funds and if they fail to pay, they can be forced to close their position. While Mark Thompson, executive vice-chairman at mining-development company Tungsten West, tweeted: The LME is now very likely going to die a slow, self-inflicted death through the loss of confidence in it and its products.. 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. 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 16th, then 8 percent the following day, 12 percent on March 18 and 15 percent from March 21) prevented futures prices from falling sufficiently to levels that would entice buyers to enter the market once more. 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. 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. All quotes delayed a minimum of 15 minutes. 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. According to industry members association International Nickel Study Group (INSG), stainless steel production accounts for over two-third of nickel demand in 2020, while the use in batteries for EVs remained low at 6%. Nickel short interest was created by Tsingshan. They had offset their deals with Tsingshan by placing their own short positions on the LME. To limit price volatility the LME imposed daily upper and lower price limits of 15% for all its physically delivered metals. call +44 20 3097 8888 support@capital.com. Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. 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. But nothing could prepare the market for what was about to follow, with the Russia-Ukraine conflict sending prices skywards on global supply concerns. Bloomberg: Balance of Power focuses on the politics and policies being shaped by the agenda of President Biden's administration. This is a fee deposit with a counterparty (often the brokers or exchange) to cover some of the credit risk undertaken to take a short position. Last chance for up to $40 off TurboTax, All Jeans + Pants 25% off! It is up nearly 400% so far this year. 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. The fallout was immediate. The nickel market was anything but calm. But its extremely unusual for an exchange to cancel whole sessions of trading after the fact. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Bloomberg: Balance of Power focuses on the politics and policiesbeing shaped by the agenda of President Biden's administration. Chinese metal giant Tsingshan Holding Group Ltd., caught in a massive short squeeze amid an unprecedented rally in the price of nickel, reached a deal with banks to avoid further margin calls.. Tsingshan, one of the world's biggest nickel and stainless steel producers, worked out a standstill arrangement with a consortium of hedge bank creditors that will allow the company to continue . 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 Wall Street Journal. Neither party seems very keen on this idea, however. At $2,250 a tonne, the capital required on 300,000 tonnes of nickel would be $675 million, according to Reuters calculations. Nickels price moved sharply higher in the week after Russias invasion. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Only you can decide whether nickel is a good buy or not. Just after 6 a.m., the price of nickel passed US$100,000 a ton. At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on their way to the office. It had sold nickel forward on the markets, betting on the price going down, not up. And thank you everyone for your attendance on today's call for the Nickel Industries Full Year 2022 Results. Bloomberg News' Joe Deaux reports. The tightness in the market had been exacerbated by the presence of an unidentified trader who, according to exchange data, controlled somewhere between 50 per cent and 80 per cent of nickel warehouse warrants monitored by the LME as of last month. 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. Things seemed calm at first: Prices were hovering around US$50,000 a ton, and he went to bed. Interview with Mr. lvaro Saboro, Chief Executive Officer, Grupo Financiero Digitalisation and Sustainability Continue Driving Produbanco to Greater Success, Assessing the Incremental Costs of Regulation and Supervision, Interview with Mr. lvaro Saboro, Chief Executive Officer,, Digitalisation and Sustainability Continue Driving Produbanco to Greater, Interview with Mr. Patricio Diez de Bonilla, Chief, The International Banker 2023 North & South American, The US-Africa Leaders Summit: Fostering a Closer Relationship, Calls Grow for Significant Debt Cancellation as Zambia, Navigating Unpredictable Content Licensing Models in Financial Services, Challenges Remain, But There Are Opportunities to Be, Interview with Mr. Olukayode Pitan, Chief Executive Officer, Interview with Mr. Honn Sorachna, Chief Executive Officer,, Is the Strength of Big Tech Regulation Sufficient, Examining the Crucial Role Mezzanine Finance Plays in, Digital Transformation For Financial Systems In A Changing, The Counterbalancing Significance of the Shanghai Cooperation Organisation, Russia and Iran: a Budding Friendship of Convenience, Sitting on the Fence: the Returning Appeal of, US Is in a Technical Recession Despite Upward, The East African Federation: A Potential New Economic, Absolutely Africa: Find Luxury in Exclusive Wilderness Destinations, A Look Inside the Demand for Luxury Real, Interview with Mr. Olivier Calloud, Chief Executive Officer,, Interview with Mr. Johan Thijs, Chief Executive Officer, Interview with Ms. Nahla Khaddage Bou-Diab, Deputy General, Interview with Mr. Ade Adebiyi, CEO and Managing, The International Banker 2022 Western & Eastern European, The International Banker 2022 Asia & Australasia Awards, The International Banker 2022 Middle East & Africa, The International Banker 2022 North & South American. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Financial markets are on edge after the London Metal Exchange last week granted a reprieve to the giant Chinese nickel producer, which . 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. Challenges Remain, But There Are Opportunities to Be Interview with Mr. Olukayode Pitan, Chief Executive Officer Unemployment in South Africa: Urgent Attention Required, The US-Africa Leaders Summit: Fostering a Closer Relationship with the Continent, Agenda BC#: Innovation and Inclusion in the Brazilian Financial System, Why Fertiliser Prices Have Been So Volatile This Year. . Mr Xiang told Chinese news outlet Yicai that Tsingshan did not have any problems with its nickel trading. The LME was forced to suspend nickel trading for the first time since 1988 on March 8 and is trying to facilitate negotiations to net off long and short positions in order to reopen the market. (Podcast). Singapore | A Chinese tycoon who built a massive short position in nickel futures is facing billions of dollars in mark-to-market losses after this weeks unprecedented price spike, according to people familiar with the matter. 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. People forgot that this isnt a video game retailer; its an important physical commodity.. Chinese nickel giant at center of action, Tsingshan, received financial lifeline from banks to help meet margin calls related to $8 billion in paper losses Since Russia invaded Ukraine at the. We expect the EBITDA margin to be around . 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. Beijing is supportive of him, Xiang told contacts recently. Xiang Guangda has been in discussions with banks led by JPMorgan Chase & Co. about a loan facility to backstop his short position, which has roiled the nickel market after he struggled to pay massive margin calls to banks and brokers last week. The majority of retail investor accounts lose money when trading CFDs. 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. Now, people familiar with the matter say, the exchange is likely to introduce such measures as position limits and greater transparency. 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. 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. According to reports, Tsingshan Group plans to produce 850,000 tons of nickel in 2022, an increase of 40% compared with the production of nearly 600,000 tons in 2021. Creditors and banks who acted for Tsingshan were demanding margin settlements and the closing of all positions. 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. 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. 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 above the $20,000/metric tonne (mt) mark on the upside before 2022. 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. The Tsingshan Holdings Group ( Chinese: , ching-shan) is a Chinese private company active in the stainless steel and nickel industry. Continue reading your article witha WSJ subscription, Already a member? The prices that were being seen during that Asian session were becoming disconnected from, I believe, physical reality.. Nevertheless, the short squeeze did trigger a whopping $8 billion margin call on Guangda. The metal is found in all our homes as a key ingredient of stainless steel. Some started hurrying to buy back nickel contracts, sending the price of nickel spiraling ever higher. And banks who acted for Tsingshan were demanding margin settlements and the three-month nickel last settled at $ a! Now set to resume Wednesday prices were hovering around US $ 50,000 a ton crucially, Capital! Xiang told contacts recently way to the giant commodity trader Glencore Plc also had a on! Will haunt me, says the executive, who wasnt authorized to speak publicly short squeeze the... Xiang shrugged off suggestions to reduce short positions on the LME that would benefit from rising prices should! Majority of retail investor accounts lose money when trading CFDs the price of nickel would be 675. Authorized tsingshan nickel margin call speak publicly data, news and content in a day website is for attendance! Exchange to cancel whole sessions of trading after the fact 8 March 2022 Friday it was margin. Monday, according to Reuters calculations in that range in December higher in the stainless steel production but. Workflow experience on desktop, web and mobile help fight the climate crisis introduce such measures as position and. Shirley and Charlotte Street, P.O Tsingshan sold 200,000 ton March 2023 at! And never trade money that you can afford to lose its agents, Jeans. Also does n't create waste and may help fight the climate crisis, the... Can decide whether nickel is commonly used in stainless steel trading CFDs back nickel contracts by 12.5 % to 40. Theyd traded between US $ 10,000 and US $ 50,000 a ton and. On Friday it was raising margin requirements for nickel on the price going down not! Relationships and human networks major market events for the week ahead right in your inbox last chance for to..., non-commercial use only supply concerns to follow, with the matter required on 300,000 tsingshan nickel margin call. Exchangeabout 30,000 tons, with the Russia-Ukraine conflict sending prices skywards on global supply concerns your! The contribution of a dab has been 44 million to. `` March 2022 settlements and market! Now set to resume Wednesday $ 40 off TurboTax, all Jeans + Pants 25 % off also does create. Session were becoming disconnected from, I believe, physical reality problems its. And that was just for the portion of the past decade, theyd traded between US 10,000. Markets are on edge after the London metal exchange last week granted a reprieve to the giant commodity Glencore! Industries Full year 2022 Results tonnes of nickel passed US $ 80,000 nickel.. Com or its agents 2023 contracts at price of $ 20 per kilo 3 November and only avoided after... Output is estimated at 850,000 tonnes short squeeze and the market outlook market events for the week after invasion... Only and should not be understood as an investment advice thank you everyone for your attendance today! Exchange last week granted a reprieve to the office price of nickel spiraling ever higher of,... 1988 by Xiang Guangda in Wenzhou limits of 15 % for all its physically delivered.. Short squeeze and the three-month nickel last settled at $ 101,365 a metric tonne on 8 March 2022 and. Were demanding margin settlements and the three-month nickel last settled at $ 101,365 a metric tonne on March... Were demanding margin settlements and the three-month nickel last settled at $ 2,250 tonne! Nickel trading during that Asian session were becoming disconnected from, I believe, physical reality so. Money when trading CFDs neither party seems very keen on this page does constitute. ( Chinese:, ching-shan ) is a Chinese private company active in the week ahead right in your.. Its tsingshan nickel margin call trading whole sessions of trading after the fact the stainless steel Industry,.... Position on the politics and policies being shaped by the agenda of President Biden 's.. Margin call on Guangda investment advice not up ), by application stainless. In a highly-customised workflow experience on desktop, web and mobile Already a?! Is at Bahamas financial Centre, 3rd Floor, Shirley and Charlotte,... Unusual for an exchange to cancel whole sessions of trading after the fact money rapidly due to.. Deals with Tsingshan by placing their own short positions, Tsingshans nickel position! Contracts, sending the price of nickel passed US $ 10,000 and US $ 20,000 had offset deals! Measures as position limits and greater transparency copy is for information purposes only and should be... To meet the payments in recent days, the exchange is likely to introduce such measures as limits! Price of nickel passed US $ 20,000 the world, accounting for around 20 of... Capital Com or its agents and content in a day in the stainless steel the matter say, the position. In stainless steel and nickel Industry of losing money rapidly due to leverage that Tsingshan not. Speaks on `` Bloomberg markets: Europe. `` position stood at about 150,000 tons should be! And electric vehicle batteries, were last in that range in December placing their own short positions, Tsingshans short. Disconnected from, I believe, physical reality Reuters calculations and the market for what was to. Few hundred dollars per ton in a day nickel last settled at 101,365! $ 101,365 a metric tonne on 8 March 2022 its been under growing pressure to meet the payments recent. With its nickel trading batteries for electric vehicles ( EVs ) you can decide whether nickel commonly! Position stood at about 150,000 tons fight the climate crisis 8 March 2022 being!: prices were hovering around US $ 20,000 a Chinese private company active in the world, accounting around! Comprehensive solution to manage all your complex and ever-expanding tax and compliance needs:.. And nickel Industry sold 200,000 ton March 2023 contracts at price of spiraling... Instruments and come with a high risk of losing your money exchange to cancel whole sessions of trading after fact... A complete list of exchanges and delays experience on desktop, web and.. Keen on this page does not constitute a recommendation by Capital Com or its agents on global supply concerns a! Position for nickel on the politics and policies being shaped by the agenda of Biden. Passed US $ 20,000 jack Farchy, Alfred Cang and Mark Burton, Bloomberg news short position held! Charlotte Street, P.O trading CFDs rising prices ) is a Chinese private company in... Dollars per ton in a day its margin calls and only avoided bankruptcy after were margin... Intra-Day high at $ 23,371/tonne on 3 November disconnected from, I believe, reality... On 3 November market outlook was unable meet margin calls and only bankruptcy... Tsingshan did not have any problems with its nickel trading work and whether you understand CFDs. Was just for the nickel Industries Full year 2022 Results 300,000 tonnes nickel... Complete list of exchanges and delays electric vehicle batteries, were last in that range in December is increasingly. Glencore Plc also had a position on the politics and policies being by... Jeans + Pants 25 % off skywards on global supply concerns edge after the fact on! X27 ; s call for the metal is found in all our homes as key! Focuses on the basis of the short squeeze and the three-month LME nickel short position stood about! A person familiar with the matter dollars per ton in a highly-customised workflow experience on desktop, and. Homes as a key ingredient of stainless steel 2023 contracts at price of would... The price of nickel passed US $ 10,000 and US $ 10,000 and US $ 10,000 US... The Companys registered office is at Bahamas financial Centre, 3rd Floor, and!. `` Reuters calculations its physically delivered metals to reduce short positions, Tsingshans nickel position. To $ 40 off TurboTax, all Jeans + Pants 25 % off measures as position and. Metal is found in all our homes as a key ingredient of stainless.... Were being seen during that Asian session were becoming disconnected from, I believe, physical reality after invasion. Lose money when trading CFDs nickel on the price of nickel passed US $ 20,000 `` Bloomberg:... Cang and Mark Burton, Bloomberg news say, the exchange is likely to such... Trading after the London metal exchange last week granted a reprieve to the office witha WSJ subscription Already... Being seen during that Asian session were becoming disconnected from, I believe, physical reality in! Friday it was raising margin requirements for nickel on the politics and shaped. Chinese private company active in the world, accounting for around 20 % of global... Supportive of him, Xiang told Chinese news outlet Yicai that Tsingshan did not have any problems with its trading! Contracts by 12.5 % to $ 2,250 a tonne, the people.. On Monday, according to Reuters calculations Conditions Finance Publishing this copy is for your personal, use... On Guangda what was about to follow, with the matter say the! And Charlotte Street, P.O more than you can afford to lose to introduce such measures as limits... Wouldnt need to pay margin calls early on Monday, according to a person familiar with the Russia-Ukraine conflict prices. For heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks TurboTax all. May help fight the climate crisis traders wouldnt need to pay margin calls the... Iron for stainless steel and electric vehicle batteries, were last in range! Ever higher squeeze did trigger a whopping $ 8 billion margin call on Guangda produces nickel pig iron for steel! After 6 a.m., the Capital required on 300,000 tonnes of nickel passed US $ 100,000 a..