Guys there is a half decent story on this on Zero Hedge
https://www.zerohedge.com/commodities/jpmorgan-bails-out-chinese-nickel-giant-facing-billions-losses-record-margin-call?utm_source=&utm_medium=email&utm_campaign=532
@CQFocus is spot on! See the AFR article ‘Chinese tycoon behind nickel short faces billions in losses’ here:
An extract:
”Singapore | A Chinese tycoon who built a massive short position in nickel futures is facing billions of dollars in mark-to-market losses after this week’s unprecedented price spike, according to people familiar with the matter.
Xiang Guangda, who controls the world’s largest nickel producer, Tsingshan Holding, 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. Nickel rocketed to a record high above $US100,000 ($137,000) a tonne on Tuesday, driven in part by Tsingshan and its brokers’ activity, before trading was suspended.”
It looks like “Big Shot” is panic selling NIC shares to pay his margin call.
See AFR for full article.
Nickel climbs to an all time high, up 100% in two days to over US$100,000, as another short squeeze plays out, with Russia a key producer of Nickel.
The LME is not expected to recommence Nickel trading until Friday while it sorts out a probable default on a large margin call by a Chinese bank.
Nickel Mines (NIC) is dropping like a stone, currently down 33% from a high of $1.79 to $1.20 this morning after the LME suspended nickel trading due to an unprecedented spike in the price of Nickel.
WTF is going on????
