Get in touch with us now. Trading and mining giant Glencore Plc was the dominant holder of nickel in recent months, according to people familiar with the matter. Bloomberg. Glencore Nikkelverk is an important part of the green shift. During the fiscal year 2021, the Swiss-based company Glencore reported a nickel production of some 102.3 thousand metric tons. ESC Mali school of busness. Tsingshans were even larger, numbering about $US3 billion, according to a calculation based on its total short position which, even after Xiang had closed out a portion of the bet in previous weeks, was over 150,000 tonnes. In the short term, a package of loans from Chinese and international banks will help Tsingshan meet its immediate liquidity squeeze. Glencore's Koniambo mine is located in New Caledonia, mining nickel in this French territory in the South Pacific. Glencore. 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. Nickel prices had been rising for weeks, amid fears that supplies from Russia the largest exporter of refined nickel would be disrupted if the countryinvaded Ukraine. But while the short squeeze has weighed on Tsingshan's . Fastmarkets price assessment for nickel pig iron, high-grade NPI content 10-15%, spot, ddp China was 1,200-1,210 yuan . As at January 31, 2023 Glencore holds 72,008,404 Common Shares, representing approximately 70.8% of the issued and outstanding Common Shares. Executives at Tower Research Capital, one of Wall Streets oldest electronic market-makers, reined in its trading activity on the LME and put its membership in the exchange under review. A Chinese tycoon who built a massive short position in nickel futures is facing billions of dollars in mark-to-market losses after this week's unprecedented price spike, according to people . Mark Hansen, chief executive officer of Concord Resources. 92 132 MT. 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. That put Tsingshans banks and brokers, which include JPMorgan Chase, BNP Paribas, and Standard Chartered, in a bind. Glencore Ordered to Pay $700 Million in US Over Bribery Case (Bloomberg) -- Glencore Plc was ordered by a federal judge in New York to pay $700 million as a criminal punishment for a global bribery scheme orchestrated by the Swiss-based commodities trading and mining giant.Most Read from BloombergElon Musk Regains His Spot as the World's Richest PersonHow to Get a Free Flight to Hong Kong in . The nickel market was anything but calm. 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. Related Article: Nickel price spike purely financial but Tsingshan effect could linger. Once its industrial complex reaches peak p. It also highlights the risks of an opaque market where a handful of players play outsized roles, deciding how and where purchasers like global battery makers secure raw materials. The show will focus on global macro issues with a middle eastern context, provide expert analysis of major market moving stories and speak with the biggest newsmakers in the region. 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. Glencore will give almost 6bn to shareholders after the mining and commodities company reported record pre-tax profits of more than 28bn in 2022 . Your email address will not be published. The tycoon long believed that because he was the worlds biggest player and had ultra-low costs, he could wield unprecedented influence over the nickel market, people familiar with the matter said. Most market participants expect nickel prices to come back down once the crisis around Xiangs position has been resolved. Some aggrieved traders are already preparing to take legal action against the exchange. What does Tsingshan Group's rival, Glencore, do? Late Tuesday . Still, the LME has weathered numerousscandalsbefore in its 145-year history, from a 1985crisis in the tin marketthat caused many brokers to go out of business to the incident when a trader at Sumitomo hid more than $2 billion in losses. Mark Hansen, chief executive officer of Concord Resources, Help using this website - Accessibility statement. Were working to restore it. . Xiang wanted to increase Tsingshans production dramatically by producing so-callednickel mattefor electric vehicle batteries. View analysts price targets for GLEN or view top-rated stocks among Wall Street analysts. Save my name, email, and website in this browser for the next time I comment. Then came a geopolitical crisis that caught him unawares. While few observers believed Xiang could reach that level of production, he was confident. Neither party seems very keen on this idea, however. Company says it puts it into the league of the largest undeveloped nickel deposits in the world. Mid Term. Exchanges sometimes cancel trades when technology glitches or fat fingers cause one-off mistakes. He was awakened by a phone call at 5:30 a.m. Massive short positions held by Xiangs Tsingshan Holding Group Co., the worlds largest nickel producer, have gone disastrously awry over the past few days. Its not clear to what extent Xiang saw his position as merely a hedge or as a speculative bet. They held a hurried call on Monday evening, but decided to allow the nickel market to continue trading. Senior Mine Engineer. A Glencore spokesman declined to comment. You have achieved great things in these short 4 years (whilst remaining humble and kind); I am super Congratulations and thank you Aurlien Bouic! The prices that were being seen during that Asian session were becoming disconnected from, I believe, physical reality.. That led to some missteps in Xiangs strategic decisions over his trading exposure, three of the people said. Its also one of the most important raw materials needed in making batteries for electric vehicles. (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 took to social media. Cash and short-term investments. 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At 1am on March 8, the market opened. Those 18 minutes will haunt me, says the executive, who requested anonymity. . The price move on March 8 created a systemic risk to the market, the LME said two days later. 115 000 MT. 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. At 8.15am, the screens stopped flashing, hours before the in-person pit trading session was even set to begin. gold and silver, amounted to 809 and 31 516 tons, respectively. Resetting your password will log you out of all your active Yicai Global sessions. Our nickel operations are in Canada, Australia, Norway, and New . In this position, you will be responsible for the drafting of sales and purchase contracts and related legal documents. Then on March 7, nickels price began its parabolic ascent, surging from $US30,000 a tonne to more than $US50,000. 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. Tsingshan is an excellent Chinese enterprise.. Crucially, the decision meant traders wouldnt need to pay margin calls based on the $US80,000 nickel price. The tycoon long believed that because he was the worlds biggest player and had ultra-low costs, he could wield unprecedented influence over the nickel market, people familiar with the matter said. How Xiang got to this point is a story that encompasses Chinas emergence as a global economic behemoth. 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. For the LME to cancel nickel trades between willing buyers and sellers is unforgivable. Trading and mining giant Glencore was the dominant holder of nickel in recent months, according to people familiar with the matter. Glencore is a leading producer and marketer of nickel globally and Wayne has responsibility for the operation of mines and processing facilities in Australia, New Caledonia, Canada and Norway. Tsingshan accounted for about half that amount. In terms of revenue, the global largest two companies occupy a share . Since 1910, nickel and other metals have been refined, produced and exported from the production plant in Kristiansand. 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. The dollar hit a one-week low earlier Wednesday after China's yuan gained. Glencore plc is a Swiss multinational commodity trading and mining company with headquarters in Baar, Switzerland. Shanghais most-traded nickel futures contract soared to CNY228,810 (USD36,235) a tonthe same day, and trading is suspended today. 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. Qingshan Holding Group,Nickel,Futures Contract, Paris Looms as Europe's Largest Financial Market, French Economy Minister Says, Alibaba, Spain's El Corte Ingles Department Store Ally on Digital Retail, China's GEM to Supply 100,000 Tons of Lithium Battery Materials to Korea's Ecopro, Toshiba Home Appliances Returns to Profit After Midea Takeover, Chairman Says, How AR is Poised to Change Business Forever. Last modified on Wed 15 Feb 2023 06.23 EST. We produce some of the worlds purest nickel. Hansen of Concord Resources argues that financial investors who traded nickel last week should have been prepared for the LME to step in. Xiang isnt just a financial trader making paper bets on price moves. 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