At year 2022, during March 7th to March 8th, price of London Metal Exchange nickel contract (hereinafter referred to as LME “Nickel”) is continuous soaring, with a total increase of up to 248%, once hitting a record high of $100,000 / ton, become the “Demon Nickel ” which was seriously flying away from fundamentals. On The afternoon of March 8th, the LME website disclosed the suspension of nickel trading, and in the evening announced the postponement delivery of all spot nickel contracts which are scheduled for Delivery on March 9th.
Behind LME “Demon Nickel”, the futures circle rumors that the nickel production giant QingShan Group has a large short position of LME nickel ( QingShan Group sold about 200,000 tons of Electrolytic nickel futures ). And Russia is the largest reserve country of electrolytic nickel. After the outbreak of the Russia-Ukraine war, the market worry about the supply of electrolytic nickel, which caused the futures speculation operation from the financial capital market.
The international capital giant-Glencore catched this market opportunity and madly bought the nickel inventory in the market to drive up the nickel price, to hunt and kill QingShan’s large short position of Nickel, intends to get huge profits and force QingShan to sell its controlling stake of the Nickel mine in Indonesia.
Nickel is an important component of stainless steel, so the nickel price will affect the price of raw material stainless steel, the relevant industry market are concerning about the “Demon Nickel” market direction.
Our company is also concerning about the fate of QingShan Group, because our company is the qualified supplier of QingShan Group, supply the mining intelligent pressure transmitter.