Chinese metal giant faces heavy losses on wild nickel ride

Company bet on decline in prices but market has surged

20220309 Nickel

The price of nickel soared as much as 250% in two days to briefly trade above $100,000 a ton early on March 8. © Reuters

WANG SHIYU and HAN WEI, Caixin

A Chinese metal giant is scrambling to manage massive losses from shorting nickel futures after the metal went on an unprecedented rally.

Tsingshan Holding Group, one of the world's biggest nickel and stainless steel producers, came under mounting pressure to meet margin calls for its short position, which it built since last year betting on a price decline for nickel.

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