The biggest short squeeze in the world?, page-3823

This is the problem with SHORTING if you donot cover quickly and hope the position recovers

The market on the LME is in the grip of amassive squeeze in which holders of substantial short positions are beingforced to cover at a time of low liquidity. To give a sense of nickels dizzyingsurge, it has risen around $11,000 a ton over the last five years. This weekalone, its jumped by as much as $72,000.

Its going crazy -- its not reflecting anyindustry fundamentals, said Jiang Hang, head of trading at Yonggang ResourcesCo. The LME trading system is out of control and requires intervention, or thecontagion may spill over to other metals, he said.

Late Monday, the LME decided to allow tradersto defer delivery obligations on all its main contracts -- including nickel --in an unusual shift for a 145-year-old institution that touts itself as themarket of last resort for metals. The LME alsogave a unit of China Construction Bank Corp. extra time to pay hundreds ofmillions of dollars in margin calls that were due Monday, according to peoplefamiliar with the matter. ...