Xiang Guangda – the Chinese industrial billionaire behind this month’s historic nickel short squeeze – has reportedly covered a portion of his giant short positions on the London Metal Exchange.
Chinese nickel tycoon Xiang Guangda has bought contracts on the LME to reduce his short position, according to a «Bloomberg» report citing unnamed sources, though it represents only a portion compared to large existing bets on falling prices.
Xiang’s firm Tsingshan «and its peers covered tens of thousands of tons of their short position» compared to the original exposure of over 150,000 tons before the LME first froze nickel trading earlier this month.
According to LME data, there are still 74,166 contracts with short positions held b commercial parties as of the end of last week.
The move officially dispels the market view that Xiang might not reduce short position in the nickel market after previous reports claimed he told his banks and brokers he would simply keep betting on falling prices.
