Chapter 840 Glencore Takes Action
Yang Chen asked Jin Zhina to continue to place short orders and then release 1 million tons.
Jin Zhina was a little hesitant. She felt that as the boss's personal secretary and temporarily responsible for the management of the import and export trading company, she had the obligation to explain some situations to Yang Chen.
Therefore, Jin Zhina said to Yang Chen: "Boss, I think it is safer for us to have some backup. What if, I mean what if, the price of nickel really continues to rise? Theoretically speaking, as long as we If you open a contract in the futures market for hedging, you can definitely guarantee that you will not lose money. Either the futures market makes money and the real thing loses money; or the futures market loses money and the real thing makes money. Theoretically, the money lost is the same as the money earned. There is no gain or loss after hedging. But the problem is that no one offline can take advantage of our 2 million tons of inventory. Once we lose money in the futures market and cannot sell the same amount of goods offline, we will suffer a big loss. ah."
Yang Chen nodded and said: "Your analysis is correct, but I never play my cards according to common sense. If I considered normal logic, how could I earn this billions of dollars? Just remember, I can make a lot of money People must be different from the common ideas. Because everyone has the same idea, then everyone can make money and everyone is a billionaire. Do you think it is possible?" Full content
This seems to make sense. Those rich people have done things that ordinary people have not done.
If everyone could think of something, it would be impossible to create huge wealth.
Kim Jina: "Okay. Just do whatever the boss says. Then should I release 1 million tons now?"
Yang Chen nodded and said: "Yes, sell 1 million tons of empty orders. If Glencore still dares to eat, they will wait for bankruptcy and liquidation."
Although Jin Zhina didn’t understand how Yang Chen dared to say that Glencore would go bankrupt as long as it took these 1 million tons of empty orders.
But since she followed Yang Chen, she has never seen him fail.
So, just do whatever he says and wait to see the results.
At this time, the headquarters of Glencore in Switzerland exploded.
A short order for 1 million tons of electrolytic nickel once again appeared in the Lundun trading market. Without checking, you know that it is probably a short order issued by Yang Chen's Xingchen Import and Export Trading Company.
This made them confused. Is Yang Chen really stupid or confident? Why did he dare to place a short order?
No matter what, as long as it is an empty order released by Yang Chen, I can eat as much as I can.
soon,
The 1 million tons of short orders released by Jin Zhina were swept away again.
In this way, all the 2 million tons of electrolytic nickel that Yang Chen just bought were released.
Calculated based on the average price released, it should be US$21,000/ton.
This also means that the value of these contracts is 42 billion meters of gold. Calculated based on a margin ratio of 8%, Glencore has to invest 3.36 billion meters of gold in one go.
If prices fluctuate subsequently, they may have to continue to make margin calls.
Likewise, Yang Chen's side also needs to provide such a large amount of deposit.
If the subsequent price continues to rise, he will have to continue to replenish his margin, otherwise his position will be forced to be liquidated by the trading market.
A classic showdown in the nickel futures market is about to take place.
After Glencore once again took Yang Chen's 1 million tons short order, it immediately took action.
They wanted to raise the price within a month to the point where Yang Chen couldn't afford the deposit, so they had to act as soon as possible.
There are two main methods to increase the price of nickel.
First, reduce global nickel production.
Second, the large-scale purchase of nickel on the market will cause supply to exceed demand and prices will rise.
Of course, there is a theoretical possibility that a local war will occur, and the countries participating in the war happen to be major nickel producing countries.
However, at present, the possibility of war in major nickel-producing countries is very small. This method can be ignored and the first two are mainly looked at.
As mentioned earlier, Tsingshan Group directly or indirectly participates in half of the world's daily nickel production.
Note that this is only daily production, not total production and inventory.
However, the daily output is enough to make a fuss.
As long as the daily output is significantly reduced, there will be an obvious reaction in the market within a few days.
Glencore has developed four plans.
First, it directly stopped production of the nickel mines it controlled and announced a price increase to 50,000 meters of gold per ton.
Second, discuss with the person in charge of the nickel mine that I have good relationships with to reduce nickel production within this month and also increase the price to 50,000 meters of gold/ton.
As compensation, Glencore will raise its purchase price to make up for the monthly losses suffered by the nickel mine.
Third, news has been released that Glencore urgently needs a large amount of electrolytic nickel. Anyone who wants it will be welcomed, and the price can reach up to 50,000 meters of gold per ton.
Fourth, President Louis Bartrus directly contacted Zhang Qingshan, chairman of Qingshan Group, to seek cooperation.
The first and second plans are obviously to reduce the production of nickel. If the production is reduced, the supply in the market will exceed the demand, and the price will naturally rise.
At the same time, Glencore exercised its pricing power and directly raised the price from the current 22,000 meters of gold/ton to 50,000 meters of gold/ton.
This damn thing didn’t rise even a little bit, it more than doubled.
It shows how ruthless they are, they just want to take advantage of this opportunity to kill Yang Chen.
The third plan is actually a trap.
Glencore only released news that it would purchase electrolytic nickel at a price of up to 50,000 meters of gold per ton, but in fact they would not actually purchase it.
They will only delay time. After all, there are many rounds of back-and-forth negotiations on commodities, and a month will pass quickly.
As long as the delay lasts a month, they can terminate the acquisition plan for any reason.
The fourth plan is that Glencore obviously wants to join forces with Tsingshan Group for this round.
As long as these two companies join forces, they will have the final say in global nickel production and prices.
Louis Bartrus got on the phone with Zhang Qingshan.
A few years ago, Tsingshan Company was attacked by Glencore and lost billions.
Zhang Qingshan hates Glencore so much that he never wants to deal with them in his life.
So, it sounds like you felt that when Louis Bartrus wanted to call him, he wanted to refuse.
But then he thought again, could he make back the billions he lost that year?
Louis Bartrus called at this time, and Zhang Qingshan guessed what he wanted to do.
If you want help from Qingshan Group, how can you do it without getting some benefits?
Therefore, Zhang Qingshan answered the phone.
Louis Bartrus: "Haha... Mr. Zhang, how are you doing lately?"
Zhang Qingshan: "Haha... It's a great blessing from Mr. Tobatrous. I eat well and sleep well now, not to mention how good it is."
Louis Bartrus: "Haha... That's good. I was worried that Mr. Zhang lost 1 billion meters of gold to us back then. He would not think about food and would not be able to sleep. When I heard you say everything is fine, I I'm really happy. I originally wanted to apologize to you, but it seems there's no need."
Zhang Qingshan secretly scolded Louis Bartruss for not being a thing, but he still asked politely: "Okay, stop talking nonsense, just tell me what you have to say. Our time is precious, don't waste it."