The nickel market could face more drama upon reopening as Tsingshan founder Xiang Guangda reportedly has no intentions to reduce his short positions.
Tsingshan founder and nickel tycoon Xiang Guangda told his banks and brokers that he does not intend to reduce his positions, according to a «Bloomberg» report citing anonymous sources familiar with the matter.
This contrasts with reports earlier this week that Xiang might be willing to exit his short positions entirely.
Xiang – nicknamed «Big Shot» among Chinese commodity circles – is believed to be holding positions on around 150,000 tons of nickel.
Still Bearish
The report said that Xiang still believes nickel prices will fall and proposed to pledge some of Tsingshan’s assets in Indonesia as collateral for margin calls owed, though no decisions have been concluded.
The discussions involved around 10 banks and brokers with which Tsingshan holds positions.
Delayed Market Opening
the London Metal Exchange had originally planned for a market reopening today but has extended the trading freeze to next week after failing to close out short positions by matching them with long ones during the halt in order to prevent another major squeeze.
«In relation to netting off long and short positions, the initial responses indicated limited potential uptake, particularly from those with short positions, and considerable differences in view on the appropriate price,» the exchange said. «However, the LME is continuing to explore this with the market.»
