FOCUS-Chinese tycoon's 'big short' on nickel trips up Tsingshan's miracle growth. 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 on . When prices rose above $20,000 he would consider shorting nickel, the people said, because his production costs in Indonesia were as low as $10,000 a ton. China's Tsingshan fires nickel rally as it cuts costly exposure-sources. Xiang's company Tsingshan Holding Group would have owed the New York-based bank ~$1B on . LONDON — China's Tsingshan Holding Group bought large amounts of nickel to reduce its short bets on the metal and its exposure to costly margin calls, turbocharging a record rally fueled by the conflict in Ukraine, three sources familiar with the matter said. What is a short squeeze? Tsingshan had paid its margin calls up until March 4, when the nickel price closed at $28,919 a ton. Photo: AFP. That is the Chinese nickel giant Tsingshan Holding Group, the world's biggest nickel producer. Like many . Tsingshan, for instance, has a short position of 30,000 tonnes of nickel directly on the LME, which is held through brokers. March's LME nickel short squeeze pummelled Chinese nickel-maker Tsingshan Holding Group. "The risks of battery-grade nickel supply are much reduced. China's Tsingshan Holding Group has reached agreements with two companies to swap its nickel products with a purer form of the metal to close out large short positions it holds on the London Metal . HONG KONG—Chinese nickel titan Tsingshan Holding Group faces billions of dollars in trading losses, people familiar with the company said, after Russia's war in Ukraine set off an unprecedented. Tsingshan has to either pay off the outstanding short positions, which could be as high as $8 billion, or prove it has sufficient deliverable nickel to repay in kind. The LME was forced to halt nickel trading and cancel trades after prices doubled on March 8 to more than $100,000 after Tsingshan bought large amounts to reduce its short bets on the metal . Tsingshan and others had to buy back their contracts or put actual nickel against it. Its nickel matte production in Indonesia is nearly 8,000 tonnes per month, according to the Shanghai Securities News. The company plans to. Tsingshan has to either pay off the outstanding short positions, which could be as high as $8 billion, or prove it has sufficient deliverable nickel to repay in kind. One of the world's biggest nickel and stainless steel producers, Tsingshan started building a short position — a wager that prices will fall — in the nickel market last year. The advance in nickel prices, beginning with the invasion, inflicted losses on companies, including Tsingshan, that had sold nickel contracts to lock in prices for their metallic products. While the exact scale of Xiang's losses is unclear, Tsingshan's short position on the LME is in the region of 100,000 tons of nickel, people familiar with the matter said. When including positions taken through intermediaries, the company could have suffered over $2 billion of daily losses at. China's Tsingshan group, the company in the center of a historic short squeeze on the London Metal Exchange in the week to March 11, said March 15 that it had reached a deal with its bank creditors that would buy the company time to resolve its trading position that forced the LME to halt nickel trading. JPMorgan is the largest counterparty of the nickel 'big short' and is leading talks to contain the damage to the market: reports . The only Chinese companies eligible to deliver metal into the LME's warehouses include Yantai Cash and state-owned mining giant Jinchuan. Who's the 'Big Shot' with the big short? Tsingshan started building its short position last year in part because Xiang expected a nascent surge in nickel prices to fade, according to people familiar with the matter. Tsingshan, a privately-held company, and other 'shorts' faced larger margin calls on their short bets after the LME raised the amount of money companies had to deposit with it to cover their exposure to falling nickel prices, the three sources said. Tsingshan and the LME declined to comment. Speculators were aware of Tsingshan's position, and they took on large, long positions culminating in a short squeeze in March 2022. China's Tsingshan group, the company in the center of a historic short squeeze on the London Metal Exchange in the week to March 11, said March 15 that it had reached a deal with its bank creditors that would buy the company time to resolve its trading position that forced the LME to halt nickel trading. Tsingshan's short position was said to be around 100,000 tons of nickel. One of the world's biggest nickel and stainless steel producers, Tsingshan started building a short position -- a wager that prices will fall -- in the nickel market last year. Tsingshan is rumoured to be short 200,000 tonnes of nickel, according to Chinese media. Chinese tycoon Xiang Guangda has to find a way to bail his Tsingshan Holding Group out of a crisis after its bet . Tsingshan started building its short position last year in part because Xiang expected a nascent surge in nickel prices to fade, according to people familiar with the matter. One of the world's biggest nickel and stainless steel producers, Tsingshan started building a short position -- a wager that prices will fall . Advertisement 2 Story . It had sold nickel forward on the markets, betting on the price going down, not up. HONG KONG—Chinese nickel titan Tsingshan Holding Group faces billions of dollars in trading losses, people familiar with the company said, after Russia's war in Ukraine set off an unprecedented rise in the price of a key metal used in stainless steel and electric-vehicle batteries.. A Tsingshan source, who declined to be named, said the company will convert laterite ore into nickel pig iron (NPI), which will then be processed to nickel matte. In Chinese commodities circles, Xiang is known as "Big Shot" because of Tsingshan's unrivaled clout in nickel production and trading. One of the world's top nickel producers faces massive losses on its short positions after prices soared over $100,000 per tonne last week and forced the London Metal Exchange to halt nickel trading. While the exact scale of Xiang's losses is unclear, Tsingshan's short position on the London Metal Exchange (LME) is in the region of 100,000 tonnes of nickel, people familiar with the matter . Beijing could step in to rescue Tsingshan, a source familiar with the matter told Reuters. Tsingshan has to either pay off the outstanding short positions, which could be as high as $8 billion, or prove it has sufficient deliverable nickel to repay in kind. Tsingshan's nickel matte, however, has a 70% to 75% nickel purity. Tsingshan has to either pay off the outstanding short positions, which could be as high as $8 billion, or prove it has sufficient deliverable . The. Moscow's invasion of Ukraine and the west's moves to sanction Russia, a key major supplier, have electrified an already bullish nickel market. Tsingshan has to either pay off the outstanding short positions, which could be as high as US$8 billion, or prove it has sufficient deliverable nickel to repay in kind. When speculative trading goes badly, it often goes extraordinarily badly for those caught on the short end. As Bloomberg also reveals, Tsingshan has a short position of about 30,000 tons of nickel directly on the LME, held through brokers CCBI, ICBC Standard Bank and Sucden. The company said it would reduce its short position in a "fair and orderly manner as abnormal market conditions subside," according to the statement. "There's a cash flow mismatch when you hedge . Xiang was aware of flaws in his strategy,. The paper loss stood at $8 billion on Monday, before violent moves in nickel prices led the London Metal . Tsingshan has to either pay off the outstanding short positions, which could be as high as $8 billion, or prove it has sufficient deliverable nickel to repay in kind. Until a new market equilibrium is found, exchange-traded nickel looks bearish in the short term," she added. Tsingshan Holding Group was looking at an $8 billion trading loss after nickel prices soared, The Wall Street Journal reported Tuesday . Even though the value of the nickel in its mines and warehouses had jumped, Tsingshan was reportedly facing billions in short-term losses. Tsingshan's 2022 nickel equivalent output is estimated at 850,000 tonnes. HONG KONG -- A record surge in nickel prices this week has shone a spotlight on little-known Chinese metals group Tsingshan Holdings and its co-founder Xiang Guangda as the company scrambled to . Nickel rocketed to a record high above $100,000 a ton on Tuesday, driven in part by Tsingshan and its brokers' activity, before trading was suspended. Castle Peak War "Demon Nickel" "China News Weekly" reporter / Jiang Zhiyu Published in the 1036th issue of "China News Weekly" on March 21, 2022 Tsingshan Holdings, the world's largest ferronickel and stainless steel producer, which has always been low-key, suffered an "epic short squeeze" and is still in the game. Nickel rocketed to a record high above $100,000 a ton on Tuesday, driven in part by Tsingshan and its brokers' activity, before trading was suspended. Beijing could step in to. In the early morning of March 15, Beijing time, Tsingshan Group annou As a result, this mysterious private steel company was brought under the spotlight of the market. Chinese tycoon Xiang Guangda has to find a way to bail his Tsingshan Holding Group out of a crisis after its bet . The vital difference that made Tsingshan and Xiang the epicenter of the madness was the size of its short positions, as they took extreme measures to shield company profits against a significant nickel price slide. The LME suspended disorderly nickel trading on March 8 for a week after prices doubled to a record above $100 000/t in a few hours on expectations that China's Tsingshan had to buy metal to cover . Tsingshan has been finding it difficult to pay margin calls to . Guangda's nickel short is believed to total about 150,000 tons of exposure, making the notional value of the position roughly $3.7 billion USD at a pre-squeeze average price of $25,000/ton. Tsingshan Holding Group held the biggest short position for nickel on the LME. Xu Wei. While the exact scale of Xiang's losses is unclear, Tsingshan's short position on the LME is in the region of 100,000 tons of nickel, people familiar with the matter said. According to Bloomberg's Jack Farchy, about 50,000 tons, or roughly a third, of Xiang Guangda's total nickel short position of over 150,000 tons is held through an over-the-counter position with JPMorgan, citing "people familiar with the matter". 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