Due to the shortage of nickel caused by Russia’s sanctions, it is rumored that China’s Tsingshan Group, a private stainless steel “carrying tyrant”, was affected by the epic short squeeze triggered by foreign capital. The price of nickel futures surged by 250% in a total of 48 hours on March 7th and 8th. London Metal The Exchange (LME) must suspend nickel trading. According to market rumors, Tsingshan Group has not given up its nickel short order.
Bloomberg reported on the 11th, citing unnamed sources, that Xiang Guangda, chairman of Tsingshan Group, known as the “nickel king”, told about 10 banks and brokers in recent days that he believed nickel prices would eventually fall, so he decided to keep the short position. single. News earlier this week had suggested that Xiang Guangda might be willing to get rid of all the shorts.
According to reports, the LME announced on March 8 that it will start a process to try to match the long and short positions of market participants to close short positions before the restart of nickel market trading to prevent another short squeeze after the market opens. However, Xiang Guangda, who currently holds a short order for 150,000 tonnes of nickel, has shown little interest. In fact, the LME admits that both long and short position holders are reluctant to reduce their positions before the market opens, especially those with short positions, and traders have very divided views on the price. This suggests that once the nickel market restarts, the quotations may spark more sparks.
Beijing Daily reported that in response to rumors of being short-squeezed by foreign capital, Tsingshan Group responded on March 9 that it had deployed sufficient cash for delivery. Market rumors pointed out that Tsingshan Group was short-squeezed by foreign investment (reportedly the international mining giant Glencore), and the potential loss of short positions could be as high as US$6 billion to US$12 billion. 60% stake in the mine.