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

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.

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.