Three weeks after nickel's 250% price spike at the LME, the market remains paralyzed.
March 31, 2022
The Motley Crew Behind #Nickel’s Big Squeeze
Tags:
Glencore,
JPMorgan Chase,
LME,
Nickel,
VW
March 15, 2022
#Nickel Market #Telenovela
Last week was a tumultuous market in the Nickel market, to say the least Some unprecedented moves were seen not only in terms of price- $100'000/Ton before trading was halted-, but in terms of actions-- LME saving the banks and Brokers by canceling all trades.
Here is a recap of the week's events:
Everyone wants to know what this week will bring. Trading is set to resume tomorrow wednesday march 16:
-- Trading in LME Nickel Contracts will resume at 08:00 London time on Wednesday 16 March 2022 (“Resumption Date”) on all LME Execution Venues;
-- 15% daily upper and lower price limits to all outright Contracts in all Base Metals on all Execution Venues;
-- deferral of delivery to Wednesday 23 March at level for all Nickel Contracts entered into prior to Wednesday 16 March and due for delivery between Wednesday 16 and Tuesday 22 March inclusive;
See the complete notice here: https://www.lme.com/api/sitecore/MemberNoticesSearchApi/Download?id=c71fdcfc-0340-4a05-9f9d-371361f1c9e9
Here is a recap of the week's events:
March 11, 2022
Chinese Nickel Giant Tsingshan Faces $8 Billion Trading Loss as Ukraine War Upends Market
Tsingsham paper loss stood at $8 billion on Monday before the LME suspended trading in Nickel.
Tsingshan's founder, Xiang Guangda, told Chinese media outlet that "relevant government departments and leaders are all very supportive of Tsingshan. Tsingshan is a solid Chinese enterprise and our positions and operations do not have problems."
#LatinAmerica Wastes Billions of Dollars of #Metals
Tags:
E-Waste,
Latin America,
Metals,
Precious Metals,
Recycling
E-Waste in 13 LatAm countries rose by 49% between 2010 and 2019, roughly the world average. The issue is that just 3% was collected and safely managed, a fraction of the 17.4% global average.
According to a new report produced by the Sustainable Cycles Programme, co-hosted by the UN University and the UN Institute for Training and Research, Latin America has a big opportunity to recover valuable materials from e-waste that it has been throwing it into the garbage.
Data compiled for the report show that the e-waste generated regionally in 2019 contained 7000 kilos of gold, 310 kilos of rare-earth metals, 591 million kilos of iron, 54 million kilos of copper, and 91 million kilos of aluminum, representing a total value of roughly $1.7 billion of secondary raw materials.
March 10, 2022
How Chinese #Nickel tycoon Xiang Guangda and his #Tsingshan Holding Group Co. got short squeezed
Bloomberg's Matt Levine breaks down the LME Nickel story and how Chinese nickel tycoon Xiang Guangda and his Tsingshan Holding Group Co. got short squeezed:
Nickel
We talked on Tuesday about a hedging problem for nickel producers. If you make nickel and the price of nickel goes up, you will make more money, one day at a time, as you sell your now-more-valuable nickel. Meanwhile if you have hedged your nickel production by selling nickel futures on a commodities exchange, and the price of nickel goes up, you will get a margin call from your broker demanding that you put up a lot more money right now. Your stock of nickel in the ground and in warehouses has become more valuable, but it is not easy to turn that all into ready money; your short position in nickel futures has moved against you, and that does require ready money. In the worst case, you run out of money and lose your business even as it is becoming more valuable.
There is a variation on this problem.
March 9, 2022
#Nickel Chaos Recalls #LME's Darkest Days
"Shambolic, shameful, scandalous, calamitous, ruinous or pick any word of your choosing. Today has been a shattering blow to all that love the LME and all those that use it to conduct their daily business."— Michael Marlowe, director at Hythe Bay Metals Ltd.
Incredible that the LME canceled all the trades done on Nickel yesterday to save some "market participants" !! $JPM #CCB
LME Chief Executive Officer Matt Chamberlain defended the decision, saying that some brokers would have struggled if the nickel trades had stood. [!!!]
"It would have been extremely difficult for some of our market participants to continue their activities," Chamberlain said in an interview with Bloomberg TV. "The ability of the financial system to get that money to the members in London and then into the exchange I think would have been significantly stressed."
"It would have been extremely difficult for some of our market participants to continue their activities," Chamberlain said in an interview with Bloomberg TV. "The ability of the financial system to get that money to the members in London and then into the exchange I think would have been significantly stressed."
Read the whole story on Bloomberg here:
___________________
https://www.bloomberg.com/news/articles/2022-03-08/metal-traders-reel-as-nickel-chaos-recalls-market-s-darkest-daysMarch 8, 2022
#LME Halts #Nickel Trading After Unprecedented 250% Spike
Big Shot, Big Short
Margin calls worth "Millions of Dollars" on Tsingshan's short positions were finally paid by a unit of #China Construction Bank Corp. CCB, which is one of Tsingshan's brokers.
Prices surged to $100'000/Ton before LME halted trading.
See the whole story in Bloomberg here: LME Halts Nickel Trading After Unprecedented 250% Spike
_________________
bit.ly/MasterMetalsMarch 3, 2022
#Silver Poised for a Break-Out!
#Silver has been breaking through its short term resistance levels. A Daily close above $25.50 will confirm this new Bull Market!
$SLV $SIL
#Palladium jumps as #Russia intensifies #Ukraine invasion
#Palladium jumps through resistance levels as a cloud forms over the metal's future supplies given #Russia #Sanctions.
https://www.tradingview.com/x/oqVWYYCu/
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