glencore nickel short

Despite the recent upheaval, his company still remains the biggest in the nickel industry. . Poseidon Nickel is listed on the Australian Securities Exchange (ASX) and has a trailing 12-month revenue of around AUDC$256,000. Find the latest Glencore plc (GLNCY) stock quote, history, news and other vital information to help you with your stock trading and investing. 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. In theory, there should be two options for this 200,000 tons of nickel short order: 1. Coal Department. 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. (Bloomberg) -- A Chinese tycoon who built a massive short position in nickel futures is facing billions of dollars in mark-to-market losses after the metal surged more than 170% in two days, according to people familiar with the matter. Others in the market may also push up prices anticipating that short covering. 1. , Mar 23, 2022. . The head of one London metals brokerage recalls feeling sick as he watched the moves, realising what the spike in prices would mean for his company, the market, and the global metals industry. . While Russias nickel exports havent been targeted by sanctions, U.S. and European buyers have nonetheless sought alternatives to Russian sources. China's manufacturing purchasing managers' index (PMI) climbed to 52.6 last month, the highest reading since April 2012. We produce some of the world's purest nickel. Your email address will not be published. The LME at the end of the day is a physical metal market, he says. Nickel in electric vehicle batteries helps deliver higher energy density and longer range for vehicles. It was 5:42 a.m. on March 8 in London when the nickel market broke. 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. 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. Our nickel operations are in Canada, Australia, Norway, and New Caledonia. 3.28% . Glencore Nikkelverk is an important part of the green shift. And once again, this short squeeze racked up billions in losses for those involved. The LME suspended nickel-market trading on Tuesday and the Shanghai Futures Exchangefollowed suita day later, after prices on Chinas top commodities bourse hit their daily upward limit. 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. Crucially, the decision meant traders wouldnt need to pay margin calls on the basis of the $80,000 nickel price. It was 5.42 am on March 8 in London when the nickel market broke. He blamed foreigners making some moves for nickels price spike in an interview with Chinese news outlet Yicai. Supervised survey and mine scheduling groups. Russia is the worlds third-largest producer of nickel and its largest exporter of refined nickel metalthe type deliverable on the LME. Trading and mining giant Glencore Plc was the dominant holder of nickel in recent months, according to people familiar with the matter. Trading and mining giant Glencore Plc was the dominant holder of nickel in recent months, according to people familiar with the matter. For most of the past decade, they'd traded between $10,000 and $20,000. The exchange had serious concerns about the ability of market participants to meet their resulting margin calls, raising the significant risk of multiple defaults. Despite that, Chamberlain insisted on March 9 that the solvency of the LME itself was never in doubt. 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. 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. We're taking you for a deep dive into the world of copper - a versatile metal and important component for a low-carbon future. 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. 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. If you don't see the email, check your junk, spam or other folders. He started increasing his short position on the London Metal Exchange. Ore is processed at the Strathcona mill. 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. For most of the past decade, theyd traded between $10,000 and $20,000. For participants in commodities exchanges, a price rally is not necessarily good news. 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. 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. Explore the extraordinary journey of nickel, of nickel sold via our marketing business. But much of Chinas academic and business community did not believeRussia would attackits neighbor. The LME halted trading of the metal yesterday and announced that it is unable to deliver on spot nickel contracts scheduled for March 9. 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. . 02 March 2023. The world's top five nickel-producing companies. Several large brokers got margin calls of close to $US1 billion each over the course of the day. This was the most disorderly move in a metal Ive seen in my career, says Mark Hansen, CEO of trading house Concord Resources. Tsingshans nickel doesnt match the grade used in settlement on the LME, so the contracts arent a perfect hedge. As Contract Writer / Coordinator, you will be part of the Contract Team, which is a team within the Coal Department. For Xiangs big short position, that was painful. 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 . By Lucy Battersby. Follow the topics, people and companies that matter to you. He draws a comparison with Silver Thursday, the day in 1980 when an attempt by the Hunt brothers to corner the silver market came unstuck. Things seemed calm at first: Prices were hovering around $50,000 a ton, and he went to bed. But its extremely unusual for an exchange to cancel whole sessions of trading after the fact. Xstrata Nickel Montcalm Mine 2007 - 2010 3 years. Certain sections of this system have been patented. In terms of revenue, the global largest two companies occupy a share . 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. Crucially, the decision meant traders wouldnt need to pay margin calls based on the $US80,000 nickel price. In the short term, a package of loans from Chinese and international banks will help Tsingshan meet its immediate liquidity squeeze. . Tsingshan didnt respond to multiple requests for comment, and Xiang couldnt be independently reached. Then on March 7, nickels price began its parabolic ascent, surging from $30,000 a ton to more than $50,000. 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. 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. Xiang didnt believe the rally would last. Most analysts sided with Xiang, at least in the medium term, believing that nickel productionled by Tsingshan and its competitors in Indonesiawould outpace demand. How to Geta Free Flight to Hong Kong in 500,000 Airline Ticket Giveaway, Stocks Drop for a Second Day; Yields Stay Elevated: Markets Wrap, The SPAC Fad Is Ending in a Pile of Bankruptcies and Fire Sales, Apple Suppliers Are Racing to Exit China, AirPods Maker Says, China Warns Hedonistic Bankers to Toe the Communist Party Line. Hes in the physical nickel business. Multinational commodities company Glencore has temporarily reduced production at the Murrin Murrin nickel-cobalt operation in Western Australia following a malfunction at an acid plant at the site.. Glencore's Murrin Murrin fully integrated nickel and cobalt operation is located approximately 880km east of Perth in the north-eastern Goldfields region. Now they had to pay big margin calls on the exchange while receiving no margin from their client. Its still unclear how much of a risk the nickel rally and a cash drain from topping up margin payments pose to the company. Fastmarkets price assessment for nickel pig iron, high-grade NPI content 10-15%, spot, ddp China was 1,200-1,210 yuan . The price was frozen, below the record high but still at $80,000 a ton. Xiang was aware of flaws in his strategy, people familiar with the matter said. Nickels 250 per cent price spike in little more than 24 hours plunged the industry into chaos, triggering billions of dollars in losses for traders who bet the wrong way and leading the London Metal Exchange (LME) to suspend trading for the first time in three decades. Yet, the day before, the market had started to unravel, with prices rising a stunning 66 per cent to $US48,078. Still, contracts on the LME are backed by physical metal in a network of warehouses around the world, providing a direct link with the real-world metals industry. Related Article: Nickel price spike purely financial but Tsingshan effect could linger. Still, the LME has weathered numerous scandals before in its 145-year history, from a 1985 crisis in the tin market that caused many brokers to go out of business to the incident when a trader at Sumitomo hid more than $US2 billion in losses. Those moves sent nickel to a record high of more than $US100,000 ($136,000) a tonne on Tuesday before trading was suspended. 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. In the short term, apackage of loansfrom Chinese and international banks will help Tsingshan meet its immediate liquidity squeeze. Beijing is supportive of him, Xiang told contacts recently. Investors who had booked trades during the chaotic session in the early hours of Tuesdaywere furious. The fallout was immediate. Anyone using the LME needs to understand that. For the LME to cancel nickel trades between willing buyers and sellers is unforgivable. 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. Now, people familiar with the matter say, the exchange is likely to introduce such measures as position limits and greater transparency. Discovery of the deposits is credited to Murray Edmund Watts in 1931 or 1932. Worse, the chaos was spreading to other markets: Zinc prices spiked 15% in a few minutes to a record high, only to collapse again. Yet the firm's lucrative . 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. Rio Tinto, the world's second-largest mining company by market capitalization, last week said it would lift annual capital investment to as much as $10 billion in 2024 and 2025, up around 25% on . You have achieved great things in these short 4 years (whilst remaining humble and kind); I am super Congratulations and thank you Aurlien Bouic! 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Seemed calm at first: prices were hovering around $ 50,000 was the dominant holder of nickel electric.

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