London nickel surged for two days, with nickel futures rising from $29,770 per ton on March 7th to $101,365 per ton on the 8th, accumulating a total increase of over 230% in two days; Shanghai nickel has been hitting the daily limit for consecutive days, closing at RMB 228,810 per ton on March 8th. Qingshan Holdings is rumored to be shorting London nickel and is forced to liquidate their position. According to Hou Yanjun, General Manager of Houshi Tiancheng Investment, the situation is as follows:
1. As a major customer of Russian nickel mines, Qingshan Group took hedging trades in London to reduce contract risks from price fluctuations by opening a short position of 0.2 million tons of nickel, which is a normal operation.
2. Then London suspended the delivery qualification for Russia.
3. Qingshan Group cannot provide corresponding short positions for inventory, attracting the attention of Jia Kang, triggering a forced liquidation.
4. Then, one night, nickel in London rose by 90%, combined with leverage, Qingshan Group's hedging position this time may wipe out several years of profits, and they only need to type a few keys to drain the hard-earned money of China Smelting Group.
5. Qingshan Group is a major partner of Zhejiang Huayou Cobalt, and this incident has already affected them. $Zhejiang Huayou Cobalt (603799.SH)$Zhejiang Huayou Cobalt plunged to the limit shortly after opening, as the nickel content in electric vehicle batteries is high, other lithium mine raw materials may also be targeted, causing a sharp drop in a large number of new energy companies today, affecting the entire resource sector companies, including copper, aluminum, and zinc... $GANFENGLITHIUM (01772.HK)$ $Contemporary Amperex Technology (300750.SZ)$If the sharp drop in the AH markets is related to demonic nickel, then a rebound is imminent.