glencore nickel short

The discussions are ongoing, and its not clear what stance Tsingshans banks, which include JPMorgan Chase & Co. and China Construction Bank, will take. 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. The LME made a near-unprecedented decision. Murrin Murrin is a nickel-cobalt operation in the north-eastern Goldfields of Western Australia, producing refined nickel and cobalt metal. Russia is the worlds third-largest producer of nickel and its largest exporter of refined nickel metal the type deliverable on the LME. Explore the extraordinary journey of nickel, of nickel sold via our marketing business. Others took to social media. This suggests a possible upside of 27.1% from the stock's current price. Golf's Greatest Holes: Golfing legend Paul McGinley takes television presenter Chris Hollins on a tour of the best golf courses in Ireland and Northern Ireland. In late February and early March, Tsingshan, which had sales of 352 billion yuan ($56 billion) last year, paid its margin calls on time. Wayne has over 20 years of operational management experience of complex hydrometallurgical plants, specialising in transformation of operational and . Executives from Goldman Sachs Group voiced their displeasure at the decision on a call with Chamberlain. Executives fromGoldman Sachs Group Inc.voiced their displeasure at the decision on a call with Chamberlain. Xiang wanted to increase Tsingshans production dramatically by producing so-called nickel matte for electric vehicle batteries. MINK. 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. . Glencore plc was newly . Nickel prices surged to an all-time high on Tuesday, up roughly 250% in just two days, and forcing the London Metal Exchange to close trading. For most of the past decade, theyd traded between $10,000 and $20,000. For Xiangs big short position, that was painful. People familiar with the discussions said the exchange would ideally prefer to wait until Xiang has reached a resolution with his banks and brokers. At the current price of nickel, the brokers themselves wouldnt be able to pay their margin calls, they told the LME. For the LME to cancel nickel trades between willing buyers and sellers is unforgiveable. Tsingshan needs to increase the contract margins or roll over the futures if it decides to keep the contracts, which would require a huge amount of cash, an analyst told Yicai Global. Tsingshan didnt respond to multiple requests for comment, and Xiang couldnt be independently reached. 21 962. At current prices, nickel would comprise 12% of Glencore's EBITDA. Remember, when prices move up, traders like Xiang who have sold futures contracts face margin calls; they must put up more cash to cover potential losses. By now, Tsingshan wasnt the only nickel company that was struggling, just the biggest. Perth, Western Australia, Australia. All Rights Reserved. Short Interest; Premarket Screener . Some traders and bankers have questioned whether a producer like Tsingshan, which has relatively low production costs and is active in all parts of the supply chain, really needs such a large hedging position. You will be able to view the post at https://dtmagazine.com/money724-302022.php#wrap in the Precious Metals section. But much of Chinas academic and business community did not believeRussia would attackits neighbor. Several large brokers got margin calls of close to $1 billion each over the course of the day. Long Term . LME brokers and their clients were hit with margin call after margin call. 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. He blamed foreigners making some moves for nickels price spike in an interview with Chinese news outlet Yicai. How Xiang got to this point is a story that encompasses Chinas emergence as a global economic behemoth. 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. 1. 115 000 MT. Shares in metal recycler Sims Metals hit an 11-year high of $19.55 today following a price target increase by UBS analyst Lee Power on Tuesday from $18.90 to $20.30. 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 metal is found in all our homes as a key ingredient of stainless steel. Nickel prices usually move a few hundred dollars per ton in a day. 1w. Our fundamental responsibility is market stability, he told Bloomberg TV. The spike was driven in large part by a short squeeze centred on Chinese tycoon Xiang Guangda, who had amassed a big wager that nickel prices would fall through his company Tsingshan Holding Group. 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. As Russias invasion of Ukraine pushed up prices, short-position holders including Tsingshan scrambled to trim their bets. Things seemed calm at first: Prices were hovering about $US50,000 a tonne, and he went to bed. Our fundamental responsibility is market stability, he said. Four or five of the brokerages that are LME members would have failed, a shock that could have devastated the global metals industry. He was awakened by a phone call at 5:30 a.m. Tsingshan Group placed a short nickel order, and the matter of being shorted by the opponent was brushed off. 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. Nickels 250% price spike in little more than 24 hours plunged the industry into chaos, triggering billions of dollars in losses for traders who bet the wrong way and leading theLondon Metal Exchangeto suspend trading for the first time in three decades. The dollar hit a one-week low earlier Wednesday after China's yuan gained. 92 000 MT. UNFORGIVEABLE,tweetedMark Thompson, a former trader at Trafigura and Apollo. Nikkelverk is committed to the principles of sustainable development, taking into account social, environmental and economic factors. Bloomberg. While Russias nickel exports havent been targeted by sanctions, U.S. and European buyers have nonetheless sought alternatives to Russian sources. Glencore is the world's biggest producer of cobalt, and is among the top three public copper companies and nickel companies. In August 2021, Glencore increased its medium-term emission reduction target to a 50% reduction by 2035 on 2019 levels and introduced a new short-term target of a 15% reduction by 2026 on 2019 levels. , Mar 23, 2022. Glencore Nickel. Our marketing business markets nickel and nickel concentrates, as well as by-products and ferronickel. It was 5.42 am on March 8 in London when the nickel market broke. Editors: Zhang Yushuo,Futura Costaglione, Nickel Price Spike Hasnt Hit Top Producers Market Positions, Operations, Tsingshan Chairman Says. However, reports that Beijing is mulling a rescue deal for Tsingshan Holding Group , the company behind nickel's big short . Many producers, traders, and users of nickel with short positions on the LME were facing margin calls many times larger than they were prepared for. Resetting your password will log you out of all your active Yicai Global sessions. This type is different from the mainstream ferro-nickel and nickel pig iron. Market speculation has it that Tsingshan has a short position of about 200,000 tons of nickel, which it cannot deliver due to a lack of spot product after being assailed and squeezed out by US and European commodity futures giants such as Glencore, China Securities Journal reported yesterday. Ore is processed at the Strathcona mill. Now, the traders watched with a mixture of horror and grim fascination as the price went skyward. 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Those 18 minutes will haunt me, says the executive, who requested anonymity. . At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on their way to the office. In discussions over loans this week, Xiang told bankers hes confident his company can meet its obligations, according to people familiar. As the price rose through the London day after offices in Asia had closed, Tsingshan started struggling to pay, the people say. Anyone using the LME needs to understand that. . The LMEs special committee held another call at about 6 a.m. Now they recognized that they had tosuspend trading. 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. We produce some of the world's purest nickel. For participants in commodities exchanges, a price rally is not necessarily good news. Complete Glencore PLC ADR stock information by Barron's. View real-time GLNCY stock price and news, along with industry-best analysis. Located in Kristiansand, Nikkelverk is the largest nickel refinery in the western world producing high-quality nickel and cobalt. 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. #GlencoreCopper #MetalOfTheFuture https://lnkd.in/eEqPmJn9. Glencore Chief Executive Officer, Gary Nagle: "Overall production was mixed period-over-period (5 commodities up and 5 down in the table below), reflecting the Ernest Henry (copper/gold) and Bolivia (zinc) portfolio disposals, and geotechnical and processing challenges at Katanga, offset by improved cobalt, nickel and ferrochrome production levels and the . . At the time of the LME's trading halt, nickel had gained more than 230% in March. View analysts price targets for GLEN or view top-rated stocks among Wall Street analysts. 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. MMC Norilsk Nickel Recent Development 11.3 Glencore 11.3.1 Glencore Company Detail 11.3.2 Glencore Business Overview 11.3.3 Glencore Nickel Mining . Save my name, email, and website in this browser for the next time I comment. Find the latest Glencore plc (GLNCY) stock quote, history, news and other vital information to help you with your stock trading and investing. 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. Most market participants expect nickel prices to come back down once the crisis around Xiangs position has been resolved. Effectively, it rewound the market to the moment when prices closed on Monday at $48,078. The Chinese government may also play a role. Even at that level, clients of LME brokers had failed to pay some $500 million of margin calls in relation to their short positions on the exchange, according to a person familiar with the matter. . And once again, this short squeeze racked up billions in losses for those involved. On average, they predict the company's share price to reach GBX 620.91 in the next year. 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 giant commodity trader Glencore also had a position on the LME that would benefit from rising prices. 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. 485,996 followers. But Xiang must now decide what to do with those positions, which give him outsize influence on the price of a metal used in everything from electric-vehicle batteries to stainless-steel kitchen appliances. The LME at the end of the day is a physical metal market, he says. The investment is part of Ruperts non-brokered private placement for gross proceeds of about $35 million. How Xiang got to this point is a story that encompasses Chinas emergence as a global economic behemoth. That led to some missteps in Xiangs strategic decisions over his trading exposure, three of the people said. Related Article: Nickel price spike purely financial but Tsingshan effect could linger. Provided short/mid/long/strategic schedules using Deswik. Investors who had booked trades during the chaotic session in the early hours of Tuesdaywere furious. 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. Discovery of the deposits is credited to Murray Edmund Watts in 1931 or 1932. And that was just for the portion of the short position it held directly on the exchangeabout 30,000 tons. But the obvious consequence of so much nickel hitting the market, he believed, would be a fall in its price. For the LME to cancel nickel trades between willing buyers and sellers is unforgivable. 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. Xiang himself had little interest in international news, the people said, and the growing speculation over a possible war was hard to track in China. When Norilsk Nickel left the Western markets, Glencore became its main substitute for nonferrous metals. But while the short squeeze has weighed on Tsingshan's . 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. Including positions on the London Metal Exchange and bilateral bets with banks, Xiang still has short holdings in the region of 150,000 tonnes, the people said. Tsingshans were even larger, numbering roughly $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. Soon Chamberlain and other executives at the exchange began receiving frantic phone calls from LME brokers. 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. Shanghai's most-traded nickel futures contract . Chinese entrepreneur Xiang Guangda has been caught out by nickels price surge. Cash and short-term investments. Leeuwin managing director Chris Piggott was a senior geologist at ASX-listed Bellevue when it defined its core discoveries, and was part of the team that defined the greenfields Nova-Bollinger. Some traders and bankers have questioned whether a producer like Tsingshan, which has relatively low production costs and is active in all parts of the supply chain, really needs such a large hedging position. Evaporating liquidity. Despite the recent upheaval, his company still remains the biggest in the nickel industry. 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. Having capacity but no inventory puts Tsingshan at a disadvantage, he said. 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 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. Some started hurrying to buy back nickel contracts, sending the price of nickel spiraling ever higher. The fallout was immediate. Nickel boosts the energy within batteries and, at the same time, allows battery makers to reduce the use of more expensive cobalt. At 1 a.m. on Tuesday, the market opened. Market speculation has it that Tsingshan has a short position of about 200,000 tons of nickel, which it cannot deliver due to a lack of spot product after being assailed and squeezed out by US and European commodity futures giants such as Glencore, China Securities Journal reported yesterday. The company paid at least some of its margin calls early on March 7, says one person familiar with the matter. Xiang himself had little interest in international news, the people said, and the growing speculation over a possible war was hard to track in China. Save my name, email, and website in this browser for the next time I comment. The short position it held directly on the exchangeabout 30,000 tons Glencore & # x27 s... Futura Costaglione, nickel price spike purely financial but Tsingshan effect could linger scrambled to trim their bets trades willing. Would comprise 12 % of Glencore & # x27 ; s purest nickel for gross proceeds of $! In the Precious metals section, and he went to bed % in March analysts price targets for GLEN view. Over loans this week, Xiang told bankers hes confident his company can meet obligations. Move a few hundred dollars per ton in a day now they recognized that they had tosuspend.. Proceeds of about $ 35 million our marketing business markets nickel and pig! At Trafigura and Apollo short position, that was painful clients were hit with margin call back once! 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