Demon nickel reappears? Shanghai prices soared to the limit, and it was rumored that Nickel King only covered some empty orders

Nickel prices in London surged again. On March 24, the price limit soared for the second consecutive trading day (15%), driving Shanghai nickel prices to also soar to the limit on the 25th. According to the market, Xiang Guangda, chairman of Tsingshan Group, known as the “nickel king”, has recently covered some of the empty orders.

Bloomberg reported on the 24th, citing unnamed sources, that Xiang Guangda took advantage of the temporary unblocking of the nickel market this week and bought nickel futures through the London Metal Exchange (LME) to cover short positions. However, Xiang Guangda and his companions only covered tens of thousands of tons of short positions, and their short orders were still huge. According to reports, when the nickel market suspended trading on March 8, Xiang Guangda held more than 150,000 tons of short positions, and his business and trading partners also held a large number of short positions.

Michael Widmer, director of metals research at Bank of America, pointed out that the short order has not yet been covered, and traders will eventually have to close their positions. At least until this batch of short orders is fully covered, nickel prices may fluctuate violently every day.

At the beginning of March, the price of nickel soared by 250% in two trading days because Tsingshan Group was eager to cover the short order, which shocked the market. Beijing Daily once reported that in response to the rumors of being short-squeezed by foreign capital, Tsingshan Group responded on March 9 that it had deployed sufficient cash for delivery. Market rumors pointed out that Tsingshan Group was short-squeezed by foreign investment (reportedly the international mining giant Glencore), and the potential loss of short positions could be as high as US$6 billion to US$12 billion. 60% stake in the mine.

Zero Hedge reported that although the large short positions held by Tsingshan in the LME are eye-catching, there are actually other industrial players and physical traders in the market who hold short-side safe-haven positions. Brokers forced liquidation of positions, which may trigger another wave of short squeezes. The data showed that as of the end of last week, commercial users held 74,166 short positions in nickel.

LME bracing for fireworks tomorrow pic.twitter.com/N8L2MgBglg

— zerohedge (@zerohedge) March 25, 2022

It is worth noting that the Shanghai Futures Exchange showed that the nickel futures NI2204 had a daily limit in early trading on the 25th, but the daily limit opened during the session.

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Nickel prices were soared, and it was reported that China Construction Bank’s subsidiary did not call for margin as scheduled

The historic short-squeeze detonated, causing nickel prices to soar by up to 90% in intraday trading on March 7, and news came out that a unit of China Construction Bank was unable to add hundreds of millions of dollars in ultra-high margins in time, but had already Get a grace period from the London Metal Exchange (LME).

Bloomberg reported on the 8th, citing unnamed sources, that CCBI Global Markets, a brokerage affiliated to China Construction Bank, was given a reprieve, indicating that it has not officially defaulted. It must be noted that the failure to pay the security deposit as scheduled does not necessarily mean that there is a problem with the parent company. This may be because a customer in the metal industry did not pay CCBI Global Markets as scheduled.

The report also pointed out that Xiang Guangda, chairman of Tsingshan Holding Group Co., the world’s largest nickel and stainless steel producer, once had a huge short position in the LME through the company.

Bitcoin Returns to $40,000 as 50 Million Air Force Makes Heroic Sacrifice

Big Brother is back! Bitcoin surged 11% yesterday, recovering $40,000 in lost ground, with bottom-feeders laughing and a large number of airmen sacrificing themselves in just a few hours.

Bitcoin, the big brother of cryptocurrency, finally broke free from its two-week struggle in the $38,000 range and surged in the early hours of Feb. 5, literally.

At 11 p.m. on February 4, Bitcoin was still hovering around $37,900, but an hour later, the calendar flipped to the fifth day of the Lunar New Year, and something really “went wrong” for the Air Force. In just one hour, Bitcoin climbed $2,000, directly hitting the $40,000 barrier.

According to market watcher Coinglass, about $50 million of Bitcoin’s air force has been shorted in the past four hours, and the overall cryptocurrency market has been shorted by as much as $100 million.

Today’s surge exceeded many optimistic analysts’ expectations. Analysts who predicted last week that bitcoin would pull in at $39,600 were laughed at for being illiterate believers, but they didn’t expect bitcoin’s crazy rally to be a direct slap in the face to the bearish.

As of this writing, Bitcoin is trading at $41,345, up 11.45% in a single day, with a total market cap of $783.4 billion, finally shaking off the January slump and returning to the levels of January 7.

The money circle community believes that with all the negative news over the past month, those who want to get rid of the stock have almost sold out.

The big brother is taking the lead and the second brother is not resting either. Ether has doubled by 10% to $3,000, while maintaining a daily burn rate of about $30 million, moving towards Ether 2.0.

Learn about GameStop’s epic short squeeze in 3 minutes, and American netizens brought down the Wall Street crocodile

Shares of video game retailer GameStop and others soared last January. The U.S. staged netizens crushing hedge funds, causing heated discussions around the world. With the exposure of one of the key figures behind the counterattack, the follow-up development is still worthy of attention.

The BBC notes that GameStop is an American video game retailer. In the age of online streaming, GameStop still specializes in physical video games. Its business performance has struggled to keep up with the times, with a loss of $795 million in 2019.

But GameStop’s stock skyrocketed in a matter of days. The reason is that some retail investors used the Reddit forum to initiate the purchase of GameStop stock, which caused the stock price to rise. They intend to sabotage these attempts to short the GameStop Investment Fund. As a result, some hedge fund firms have been forced to buy back shares before they peaked, with one firm, Melvin Capital, reportedly spending $2 billion to cover losses.

In addition to Reddit, Elon Musk, the founder of electric car company Tesla, also tweeted his solidarity with a link to the Reddit discussion forum, adding fuel to the incident.

Shares of GameStop surged 135% on Jan. 27, The Wall Street Journal reported. At one point it reached a record high of $347.51 per share. Although it fell back later, with the support of retail investors, the stock price returned to $325, and the monthly line soared 16 times. GameStop is trading at just around $18 in early 2021.

Others, such as AMC, the leading global theater chain that once fell into bankruptcy, also saw their stock prices skyrocket under this wave of retail investors’ counterattacks. AMC’s share price rose more than 5 times in a single month, and American retail investors joined together on online forums such as Reddit. Accumulated buying has completely repulsed the short sellers.

After a number of hedge funds suffered huge losses from shorting GameStop, popular brokerages including Robin Hood took measures to cool the market, but the move sparked investor dissatisfaction and lawsuits.