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London Metal Exchange
BusinessChina Business

Chinese nickel giant Tsingshan said to have sufficient inventory for delivery

  • The company has swapped its nickel matte for domestic nickel plate, says state media Securities Daily
  • Tsingshan’s short on the LME is said to be 100,000 tonnes, but could be larger when taking into account other amounts through agencies, according to Bloomberg report

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Tsingshan was able to secure new loans from lenders including JPMorgan and China Construction Bank on Wednesday. Photo: 163.com
Iris Ouyang

Tsingshan Holding Group, the world’s largest nickel producer, has said that it will be able to tackle a historic short squeeze after gathering sufficient nickel inventory for delivery, and with fresh lifelines from banks.

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The company has swapped its nickel matte for domestic nickel plate, which will let it close its short position against the metal, state media Securities Daily reported on Thursday citing a reply from Tsingshan.

The firm declined to comment on Thursday.

The company’s short position was expected to cause losses worth billions of dollars and contributed to a pause in trading at major metal future exchanges in London and Shanghai.
Xiang Guangda, Tsingshan’s chairman. Photo: qq.com
Xiang Guangda, Tsingshan’s chairman. Photo: qq.com

The Shanghai Futures Exchange on Wednesday announced that it will suspend the trading of seven categories of nickel futures for a day from Wednesday night, after they surged by the daily cap for three straight days. The metal surged by the daily limit of 17 per cent to 267,700 yuan (US$42,360) on Wednesday.

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The suspension in Shanghai came after the metal skyrocketed by as much as 250 per cent in two days on the London Metal Exchange (LME), which suspended trading on Tuesday.
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