calm the farm guys, the size of the tsingshan short hedge is somewhere between 100k-300k ton…they have been actively reducing the position size buying on market, the increased margin requirement from LME is $2250 per ton so assuming they were short 300k ton this would amount to $675m margin call…given the increased price of nickel this increase in nickel price would have a much larger boost to Tsingshan margins on they’re production…that’s why it’s called a hedge.
It’s much more likely to be in the region of 100k ton anyway so more like a margin call of $225m …they’re a Fortune 500 company ranked 278 and revenue of $40b USD with back of the chinese state.
LME has suspended trading and Nickel futures in India and SHFE haven’t gone to quite the same extremes.
the 1505 Yuan price for 13.5% Indonesian NPI is per Mtu or metric ton unit which is 10kg so multiply that by 100 to get your ton price for NPI which equates to around $24k USD
https://finance.yahoo.com/news/chinas-tsingshan-fires-nickel-rally-130145605.html
calm the farm guys, the size of the tsingshan short hedge is...
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