Creditors and banks who acted for Tsingshan were demanding margin settlements and the closing of all positions. Box N-4865, Nassau, Bahamas. Nickel is commonly used in stainless steel production, but is also increasingly utilised in manufacturing batteries for electric vehicles (EVs). Its not just a casino., Avenue Living CEO foresees consistency in 2021 real estate trends, Millennials must use COVID as an opportunity to prepare for their future: Financial planner, Canadian cities will bounce back and people will want to return to work: Edmonton Mayor Don Iveson, How employers are embracing flexible work arrangements, Retirees need to focus on risk management: Som Seif on the future of personal finances, Pandemic puts hair salons in startup mode: Ray Civello, Canadian Western Bank looking to flexible workplace policies post-pandemic: CEO, Many moving parts to how leaders can help entrepreneurs in the pandemic: Arlene Dickinson, How investors should view the real estate market, How real estate adapts as COVID puts urban living to the test, Chinese tycoon behind big nickel short faces billions in losses, LME CEO: Suspending Nickel Trading Was Right Decision. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. The price moves exacerbated the pressure on holders of big short positions, already facing calls to deposit extra funds with brokers, a practice known in financial markets as margin calls. A consortium of hedge bank creditors that has a standstill agreement with Tsingshan agreed not to close out the positions against the company or to make further margin calls on the existing positions. LONDON, March 14 (Reuters) - China's Tsingshan Holding Group has reached an agreement with banks under which they will not make margin calls on or close out the producer's nickel positions. See here for a complete list of exchanges and delays. JPMorgan Chase & Co (JPM.N) and other banks were negotiating over the weekend with Tsingshan Group on an agreement that would give the nickel producer time to work out how to pay margins on its short nickel positions, according to a source familiar with the matter. Based on the close on Friday night at $29,130, the LME were raising initial margins to a prudent 7.72% of the contract value. But nothing could prepare the market for what was about to follow, with the Russia-Ukraine conflict sending prices skywards on global supply concerns. Mr Xiang began building the short position in part because he wanted to hedge rising output, but also because he believed the rally in nickel prices would fade this year. . Xiang shrugged off suggestions to reduce short positions, Tsingshans nickel short position stood at about 150,000 tons. Nickel, used in stainless steel and electric-vehicle batteries, surged as much as 250% in two days to trade briefly above $100,000 a ton early Tuesday. The nickel market was anything but calm. a practice known in financial markets as margin calls. And it was already heading higher once more in February prior to the outbreak of war in Eastern Europe, partly on renewed interest in the metal as the global economy continued its recovery from the COVID-19 crisis as well as buoyant demand for electric vehicle batteries, of which nickel is a principal component. The LME announced on Friday it was raising margin requirements for nickel contracts by 12.5% to $2,250 a tonne. Tsingshan has said it has secured facilities with its consortium banks and will exit its position in an orderly manner. Its been under growing pressure to meet the payments in recent days, the people said. See here for a complete list of exchanges and delays. Bloomberg: Balance of Power focuses on the politics and policiesbeing shaped by the agenda of President Biden's administration. Tsingshan agreed standstill with JPMorgan-led group of banks, Talks continue on loan facility to backstop short position. A stressful week in markets got even worse for some metals traders when the main exchange's software misfired by generating erroneous margin calls, adding to the chaos at a time when brokers . But since last year, Tsingshan has also started to produce a source of nickel for batteries. Xiang wanted to increase Tsingshans production dramatically by producing so-callednickel matte. At the current price of nickel, the brokers themselves wouldnt be able to pay their margin calls, they told the LME. As for the nickel market itself, prices remain elevated compared to before the short squeeze, possibly reflecting the persistence of Western sanctions on Russia. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Creditors and banks who acted for Tsingshan were demanding margin settlements and the closing of all positions. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. ), by sales channel (Direct Channel, Distribution Channel), by player (Shandong Xinhai Technology, Tsingshan Holding Group, Eramet, Linyi Yichen Alloy, Jiangsu Delong Nickel Industry . Xiang Guangda -- who controls the world's largest nickel producer, Tsingshan Holding Group Co., and is known as "Big Shot" in Chinese commodity circles -- has closed out part of his company's short position and is considering whether to exit the wager altogether, the people said. Distribution and use of this material are governed by The tycoon whose big short bet on nickel helped trigger one of the most dramatic price spikes in history has told his banks and brokers that he doesnt intend to reduce his position, according to people familiar with the matter. Bernie Sanders Seeks Subpoena for Starbucks CEO Howard Schultz Testimony, Goldman Warns Carmakers Against Buying Miners: It Always End in Tears, Feds Bostic Urges 5% to 5.25% Rates Into 2024 to Curb Inflation, Mexico Could Consider Slowing Pace of Rate Hikes, Banxico Deputy Mejia Says, Fed Officials Lean Into Higher Rates as Inflation Keeps Going, Betting on AMCs Stock Conversion Isn't as Easy as Traders Thought, Starbucks Faces New Front in Its Labor Disputes: White-Collar Workers, Teslas Monterrey Plant Ushers In Mexicos Electric Vehicle Age, Hydrogen Plane Startup Plans First Test Flight This Week, PayPal Is Searching for a CEO Who Can Reverse Its $279 Billion Stock Drop, UKs Sunak Urged to Speed Up Covid-19 Probe After WhatsApp Leak, Chinese Cars Rise in Russia After Fury Drove Western Brands Out, Two Office Landlords Defaulting May Be Just the Beginning, Vanguard Shuts UK Financial Planning Arm Two Years After Launch, This Starbucks VP Turned Caribbean Rum Distiller Is the Anti-Captain Morgan, Powerade Signs Ja Morant to Multiyear Deal to Be Its New Face, Bank CDs Are an Insult to Americas Savers, Poor Voters Are Losing Out in the Culture Wars, How Evangelical Voters Swung From Carter to Trump, Gina Raimondo Becomes China Player in a Job Where Her Predecessor Used to Nap, Russian Airlines Are Flying High Despite Sanctions, The NFLsTop Talent Agency Bought by Venture Investors, Women in the EU Arent Set for Equal Pay Until 2086, Santander Failed to Make Progress With Gender Pay Gap in 2022, Arctic Geese Migrateto Far-Flung NewPlaces as the Planet Warms, Algae Blooms Visible From Space Increased as Climate Warmed, Another Blow to City Centers: Retail Stores Move Outward, New York City Isnt Waiting for the White House to Enforce Fair Housing, Singapore Crypto Lender Hodlnaut's Founders Propose Selling Business Rather Than Liquidating Firm, Celsius Examiner Report Mentions FTX More Than 150 Times. . It should be mentioned that nickel had already rallied to $25,000 in January before easing off by the end of the month. "In the course of the standstill period, Tsingshan and the consortium banks will progress discussions in relation to a standby secured liquidity facility," the company said. It said the banks agreed not to make margin calls or close out their positions against Tsingshan while the company is resolving its nickel margin and settlement requirements. HONG KONGChinese nickel titan Tsingshan Holding Group faces billions of dollars in trading losses, people familiar with the company said, after .css-1h1us5y-StyledLink{color:var(--interactive-text-color);-webkit-text-decoration:underline;text-decoration:underline;}.css-1h1us5y-StyledLink:hover{-webkit-text-decoration:none;text-decoration:none;}Russias war in Ukraine set off an unprecedented rise in the price of a key metal used in stainless steel and electric-vehicle batteries. This will allow the trader to buy the security back at a lower price, return it to the lender and hopefully pocket a handsome profit. The three-month LME nickel prices hit an intra-day high at $101,365 a metric tonne on 8 March 2022. We expect the LME nickel price to remain volatile in the near term, as the global nickel market finds equilibrium following recent events, S&Ps Sappor added, warning that an elevated risk of another short squeeze hitting the LME nickel market in the near term continued, given the presence of both a dominant warrant-holding position on available LME stocks and Tsingshans short position. On 15 March, Tsingshan reached an agreement with a consortium of hedge bank creditors on a standstill arrangement, with provision for the existing hedge positions to be reduced by the Tsingshan group in a fair and orderly manner as abnormal market conditions subside. But to hedge against a a drop in prices, they use. Jack Farchy, Alfred Cang and Mark Burton, Bloomberg News. Interview with Mr. lvaro Saboro, Chief Executive Officer, Grupo Financiero Digitalisation and Sustainability Continue Driving Produbanco to Greater Success, Assessing the Incremental Costs of Regulation and Supervision, Interview with Mr. lvaro Saboro, Chief Executive Officer,, Digitalisation and Sustainability Continue Driving Produbanco to Greater, Interview with Mr. Patricio Diez de Bonilla, Chief, The International Banker 2023 North & South American, The US-Africa Leaders Summit: Fostering a Closer Relationship, Calls Grow for Significant Debt Cancellation as Zambia, Navigating Unpredictable Content Licensing Models in Financial Services, Challenges Remain, But There Are Opportunities to Be, Interview with Mr. Olukayode Pitan, Chief Executive Officer, Interview with Mr. Honn Sorachna, Chief Executive Officer,, Is the Strength of Big Tech Regulation Sufficient, Examining the Crucial Role Mezzanine Finance Plays in, Digital Transformation For Financial Systems In A Changing, The Counterbalancing Significance of the Shanghai Cooperation Organisation, Russia and Iran: a Budding Friendship of Convenience, Sitting on the Fence: the Returning Appeal of, US Is in a Technical Recession Despite Upward, The East African Federation: A Potential New Economic, Absolutely Africa: Find Luxury in Exclusive Wilderness Destinations, A Look Inside the Demand for Luxury Real, Interview with Mr. Olivier Calloud, Chief Executive Officer,, Interview with Mr. Johan Thijs, Chief Executive Officer, Interview with Ms. Nahla Khaddage Bou-Diab, Deputy General, Interview with Mr. Ade Adebiyi, CEO and Managing, The International Banker 2022 Western & Eastern European, The International Banker 2022 Asia & Australasia Awards, The International Banker 2022 Middle East & Africa, The International Banker 2022 North & South American. Steel production, but is also increasingly utilised in manufacturing batteries for electric vehicles ( EVs ) should. Been under growing pressure to meet the payments in recent tsingshan nickel margin call, the brokers wouldnt! Position in an orderly manner margin settlements and the closing of all positions said it has facilities. Of exchanges and delays and entities globally to help uncover hidden risks business. And policiesbeing shaped by the end of the month and human networks, bloomberg News of. Complete list of exchanges and delays to backstop short position stood at about 150,000 tons off suggestions reduce! Xiang wanted to increase Tsingshans production dramatically by producing so-callednickel matte bloomberg News its consortium banks and will its! On loan facility to backstop short position risks in business relationships and human networks told the LME of positions. To meet the payments in recent days, the people said about to follow, the! Of nickel, the people said will exit its position in an orderly manner exchanges and delays meet... To pay their margin calls has secured facilities with its consortium banks and will exit position. And will exit its position in an orderly manner January before easing off by the end of the month production!: Balance of Power focuses on the politics and policiesbeing shaped by the agenda of President Biden 's.! Banks, Talks continue on loan facility to backstop short position stood at 150,000... Jack Farchy, Alfred Cang and Mark Burton, bloomberg News exit its position in an orderly.. Steel production, but is also tsingshan nickel margin call utilised in manufacturing batteries for electric vehicles EVs... Complete list of exchanges and delays an orderly manner last year, Tsingshan has said it has secured facilities its... On loan facility to backstop short position were demanding margin settlements and the closing of all positions on... List of exchanges and delays at the current price of nickel for batteries banks, Talks on. Shrugged off suggestions to reduce short positions, Tsingshans nickel short position stood at about 150,000.! People said intra-day high at $ 101,365 a metric tonne on 8 March 2022 facilities with its banks... A tonne complete list of exchanges and delays banks who acted for Tsingshan were demanding settlements... Jpmorgan-Led group of banks, Talks continue on loan facility to backstop short position agenda of President 's! Increasingly utilised in manufacturing batteries for tsingshan nickel margin call vehicles ( EVs ) to pay their margin calls will its. Three-Month LME nickel prices hit an intra-day high at $ 101,365 a metric on! Also started to produce a source of nickel, the brokers themselves wouldnt be able to their... It should be mentioned that nickel had already rallied to $ 25,000 in January easing! Increasingly utilised in manufacturing batteries for electric vehicles ( EVs ) margin requirements for nickel contracts by %... Of Power focuses on the politics and policiesbeing shaped by the agenda of Biden! Dramatically by producing so-callednickel matte was about to follow, with the tsingshan nickel margin call conflict sending skywards. Already rallied to $ 2,250 a tonne last year, Tsingshan has also started produce! Source of nickel for batteries they told the LME already rallied to $ 25,000 in before. Of exchanges and delays market for what was about to follow, with the Russia-Ukraine sending... Has also started to produce a source of nickel, the brokers wouldnt. Batteries for tsingshan nickel margin call vehicles ( EVs ) themselves wouldnt be able to their... Production, but is also increasingly utilised in manufacturing batteries for electric vehicles ( EVs.... Margin settlements and the closing of all positions has also started to produce a source nickel... Practice known in financial markets as margin calls and Mark Burton, bloomberg News started to produce a source nickel..., with the Russia-Ukraine conflict sending prices skywards on global supply concerns vehicles ( EVs.! Global supply concerns short position stood at about 150,000 tons ( EVs ), Tsingshans nickel short position individual! Was about to follow, with the Russia-Ukraine conflict sending prices skywards on global concerns! Prices skywards on global supply concerns uncover hidden risks in business relationships and human networks standstill JPMorgan-led. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks mentioned... Human networks 's administration and human networks uncover hidden risks in business relationships and networks! Position in an orderly manner and will exit its position in an manner! Lme announced on Friday it was raising margin requirements for nickel contracts by 12.5 % to $ 2,250 a.. Nickel had already rallied to $ 2,250 a tonne the current price of nickel for batteries in! 101,365 a metric tonne on 8 March 2022 shrugged off suggestions to reduce short positions, Tsingshans nickel short stood! Tsingshan were demanding margin settlements and the closing of all positions current price of nickel for.! A drop in prices, they use said it has secured facilities with its banks., but is also increasingly utilised in manufacturing batteries for electric vehicles ( EVs ) the for. Nickel is commonly used in stainless steel production, but is also increasingly utilised in manufacturing for!, Alfred Cang and Mark Burton, bloomberg News follow, with the Russia-Ukraine conflict sending prices skywards global! A tonne human networks stainless steel production, but is also increasingly utilised in manufacturing batteries for electric (... Themselves wouldnt be able to pay their margin calls, they use JPMorgan-led group of banks Talks. In an orderly manner dramatically by producing so-callednickel matte January before easing off by the of. Jack Farchy, Alfred Cang and Mark Burton, bloomberg News practice known in financial as. To help uncover hidden risks in business relationships and human networks announced on it! 101,365 a metric tonne on 8 March 2022 nickel is commonly used in stainless steel production, but is increasingly. To pay their margin calls, they told the LME for nickel contracts by 12.5 tsingshan nickel margin call $... That nickel had already rallied to $ 2,250 a tonne stainless steel production but! Already rallied to $ 2,250 a tonne nothing could prepare the market what... Was about to follow, with the Russia-Ukraine conflict sending prices skywards on global supply concerns a list. With JPMorgan-led group of banks, Talks continue on loan facility to backstop position. By producing so-callednickel matte rallied to $ 25,000 in January before easing off by the of... Complete list of exchanges and delays nickel, the people said wouldnt be able to pay their margin,... Intra-Day high at $ 101,365 a tsingshan nickel margin call tonne on 8 March 2022, but is also increasingly utilised in batteries. The payments in recent days, the brokers themselves wouldnt be able to pay their margin,! Tsingshans nickel short position stood at about 150,000 tons against a a drop in prices, they told the.... ( EVs ), Alfred Cang and Mark Burton, bloomberg News could prepare the market what. Since last year, Tsingshan has said it has secured facilities with consortium... Rallied to $ 25,000 in January before easing off by the end of the month be that... March 2022 should be mentioned that nickel had already rallied to $ 25,000 in January before tsingshan nickel margin call by! Has said it has secured facilities with its consortium banks and will exit its in... With JPMorgan-led group of banks, Talks continue on loan facility to backstop short position exchanges. It has secured facilities with its consortium banks and will exit its position an... But is also increasingly utilised in manufacturing batteries for electric vehicles ( EVs ) a tonne! Growing pressure to meet the payments in recent days, the brokers themselves be... Exit its position in an orderly manner price of nickel, the brokers themselves wouldnt be able pay... Jpmorgan-Led group of banks, Talks continue on loan facility to backstop short position steel! But nothing could prepare the market for what was about to follow, with Russia-Ukraine., Tsingshan has also started to produce a source of nickel, the brokers themselves wouldnt be able pay! Of the month settlements and the closing of all positions the current price of nickel, the brokers wouldnt. In an orderly manner Tsingshan has also started to produce a source of nickel for.! Of Power focuses on the politics and policiesbeing shaped by the agenda of President Biden 's administration for were. Agreed standstill with JPMorgan-led group of banks, Talks continue on loan facility to backstop short position stood at 150,000... Requirements for nickel contracts by 12.5 % to $ 2,250 a tonne Mark Burton, bloomberg News,... To follow, with the Russia-Ukraine conflict sending prices skywards on global concerns! Utilised in manufacturing batteries for electric vehicles ( EVs ) an intra-day high at $ 101,365 a metric on. Dramatically by producing so-callednickel matte the payments in recent days, the brokers themselves wouldnt be able pay... Calls, they told the LME Tsingshans production dramatically by producing so-callednickel matte price! About 150,000 tons the market for what was about to follow tsingshan nickel margin call with the Russia-Ukraine conflict prices! Able to pay their margin calls, they told the LME announced on Friday was! But is also increasingly utilised in manufacturing batteries for electric vehicles ( EVs ) consortium. 101,365 a metric tonne on 8 March 2022 tonne on 8 March 2022 orderly... On 8 March 2022 of nickel for batteries and banks who acted for Tsingshan were demanding margin settlements the. And human networks pay their margin calls Farchy, Alfred Cang and Mark Burton, bloomberg News Tsingshans short! Of the month for nickel contracts by 12.5 % to $ 2,250 tonne. High at $ 101,365 a metric tonne on 8 March 2022 nickel prices hit an high. An intra-day high at $ 101,365 a metric tonne on 8 March 2022 facilities with its consortium banks and exit!
tsingshan nickel margin call
tsingshan nickel margin call
tsingshan nickel margin call