Summary
[Unusual fluctuations in nickel prices, Huayou Cobalt said that there was no forced liquidation]Huayou Cobalt issued a clarification announcement on the 9th, saying that so far the company has not been forced to liquidate, and the risk is controllable. The future trend of nickel futures is uncertain, and there is a risk that the company’s hedging business may suffer losses. (China News Network)
Huayou CobaltClarification issued on the 9thannouncementThe company said that up to now, the company has not been forced to liquidate the position, and the risk is controllable. The future trend of nickel futures is uncertain, and there is a risk that the company’s hedging business may suffer losses.
Huayou CobaltSaid that recently, some media have released reports involving the company’s accumulation of a large number of short positions in the nickel derivatives market, and the company’s Indonesian nickel resource development project may be affected by partners. The relevant situation is described as follows:
Nickel is the main raw material in the company’s production and operation. The company has deployed nickel-cobalt resource development business in Indonesia. In order to stabilize operations and prevent risks, in order to prevent and control the risk of price decline and lock in operating profits when nickel prices continue to rise, the company combines its own production and operation conditions and strictly follows the company’s hedging. Hedging management system to carry out nickel hedging business. Hedging business is a commonly used risk prevention tool in production and operation, not active speculation. Recently, the nickel futures market has experienced ultra-abnormal fluctuations. Up to now, the company has not been forced to liquidate its positions, and the risks are controllable. The future trend of nickel futures is uncertain, and there is a risk that the company’s hedging business may suffer losses.
The production and operation of the company is normal. The development projects of nickel and cobalt resources such as the laterite nickel ore hydro-smelting crude nickel-cobalt hydroxide project and the laterite nickel ore pyro-smelting high nickel matte project in Indonesia are all progressing normally. Among them, the subsidiary Huayue Nickel-Cobalt Co., Ltd. The company’s laterite nickel ore hydro-smelting project with an annual output of 60,000 tons of nickel metal has been successfully put into trial production.
(Article source: China News Network)