Nickel

[TASFarms]

What’s up with nickel

[shtferbrains]

Read somewhere there was a short squeeze on nearby on London exchange.

Russia is a big producer.
Embargo supply problems.

All the metals used in EV's are on a rip.
Soon will have to bump subsidies to make them affordable.

[6V53]

Don't know what's going on with nickel other than it's used to make stainless steel but I know 15 lbs of silver wire gets vaporized every time a cruise missile goes off.

[TOM4CWB]

Don't know what's going on with nickel other than it's used to make stainless steel but I know 15 lbs of silver wire gets vaporized every time a cruise missile goes off.

Nickel went from $20k/t to $101k/t in a couple of hours... no daily trading limits... so one guy[*] who was short owed over 8B$ in margin calls.

Hedgers get screwed if it is impossible to be allowed to actually deliver on a short position because of margin calls... which are often retroactively increased as volatility increases... which magnifies the futures volatility... forcing liquidation of the futures position... even though the traded commodity is available for delivery on time. Forced into buying puts... at huge premiums to hedge. Some would say a risky way to manage risk.. and very expensive [to the extreme] when the markets go crazy.

I think they retroactively walked the price back some $80k/t... and still are not trading till next week... London Exchange... Stopped trade Tuesday.

https://www.mining.com/wp-content/uploads/2022/03/reuters-nickel-big-short.jpg

"[*] Big Shot’s short
Bloomberg reports Chinese entrepreneur Xiang Guangda – known as “Big Shot” – has for months held a large short position on the LME through his company Tsingshan Holding Group Co, the world’s largest nickel and stainless steel producer."

[TOM4CWB]

Nickel went from $20k/t to $101k/t in a couple of hours... no daily trading limits... so one guy[*] who was short owed over 8B$ in margin calls.

Hedgers get screwed if it is impossible to be allowed to actually deliver on a short position because of margin calls... which are often retroactively increased as volatility increases... which magnifies the futures volatility... forcing liquidation of the futures position... even though the traded commodity is available for delivery on time. Forced into buying puts... at huge premiums to hedge. Some would say a risky way to manage risk.. and very expensive [to the extreme] when the markets go crazy.

I think they retroactively walked the price back some $80k/t... and still are not trading till next week... London Exchange... Stopped trade Tuesday.

https://www.mining.com/wp-content/uploads/2022/03/reuters-nickel-big-short.jpg

"[*] Big Shot’s short
Bloomberg reports Chinese entrepreneur Xiang Guangda – known as “Big Shot” – has for months held a large short position on the LME through his company Tsingshan Holding Group Co, the world’s largest nickel and stainless steel producer."

https://www.mining.com/lme-cancels-nickel-trading-after-price-soars-past-100000-a-tonne/

[mcfarms]

Not sure if I remember it perfectly but read a tweet that said.
"A tonne of nickel is worth a hundred thousand dollars and a tonne of nickels costs ten thousand dollars, "

[Rareearth]

I think it was a Chinese guy that did something similar with copper a few years ago

[TOM4CWB]

I think it was a Chinese guy that did something similar with copper a few years ago

What a HUGE lesson to learn... I sure did last year... the exchanges are brutal in how they treat hedge holders [producers] on margin calls [limit moves expanded very fast]. Wheat hedges have been brutal.. get stopped out... the losses can add up so fast,,, and then have no hedge. There has to be a better way. Back to back [sale by grower, and purchase by end user] transactions eliminate the margin calls... which the USDA reports weekly show the export commitments.... which allows sales transparency Canada is missing.

Ag Canada should have passed laws; like the US did on USDA reporting of export sales weekly.

[LWeber]

... which the USDA reports weekly show the export commitments.... which allows sales transparency Canada is missing.

Ag Canada should have passed laws; like the US did on USDA reporting of export sales weekly.

Conservatives didn't think it was needed.
Hermanson and Ritz did not get it.
Ag Canada has sh it to do with it.
Ag Canada gave the export sales reporting recommendation to the Minister in 2011.
You cant fix stupid.

Not a chance in hell the Liberals will pass it now.

[TOM4CWB]

Conservatives didn't think it was needed.
Hermanson and Ritz did not get it.
Ag Canada has sh it to do with it.
Ag Canada gave the export sales reporting recommendation to the Minister in 2011.
You cant fix stupid.

Not a chance in hell the Liberals will pass it now.

ETF’s… with Billions of $$$… are not trading fundamentals… and create volatility of exponential magnitudes.
The basic commodity markets are being distorted fundamentally by ETF’s so hedged production can’t effectively (Farmers and End Users) and efficiently use futures markets in these conditions.