妖鎳？ Crazy Nickel? Just some thoughts
There are some background in the Nickel story: 1. There are mainly 2 kinds of nickel deposits in the world: laterite vs sulphide; 2. Class 1 nickel is traded in LME; 3. Class 1 nickel is mostly produced from sulphide deposits; 4. Batteries use class 1 nickel; 5. Russia nickel mines are mostly sulphide deposits; 6. Russia nickel producer Norilsk produce about 166k MT (metric ton) nickel p.a.; 7. Tsingshan's nickel mine in Indonesia is laterite deposits and mainly produce Nickel alloy for stainless steel production, so called class 2. Some estimates their nickel equivalent production is about 300,000 MT; 8. Glencore nickel production 121k MT p.a.; 9. HKEX owns LME; Surely, the short squeeze and the rise of price of nickel are crazy. But, consider the magnitude of the short contract: 200k MT(metric ton) @USD20k/MT short (reported in some Chinese media), compare to a global annual production of about 2 - 2.5 million MT, and around 2/3 of the annual production of Tsingshan, on a shor...
