After several days of shock, the aftershock of lunni’s forced short market impacted a shares, and many listed companies responded intensively.
According to the reporter of shell finance and economics, the main listed companies involved in nickel production in China include Zhejiang Huayou Cobalt Co.Ltd(603799) ( Zhejiang Huayou Cobalt Co.Ltd(603799) . SH), Gem Co.Ltd(002340) ( Gem Co.Ltd(002340) . SZ), Chengtun Mining Group Co.Ltd(600711) ( Chengtun Mining Group Co.Ltd(600711) . SH). Many enterprises are involved in lithium battery business, and nickel is one of the upstream materials of lithium battery production.
Due to the close cooperation with Castle Peak holdings, which was rumored to be forced to hold positions, Zhejiang Huayou Cobalt Co.Ltd(603799) has fallen the limit for two consecutive trading days on March 8 and March 9. On March 9, Zhejiang Huayou Cobalt Co.Ltd(603799) responded that the high nickel price was unsustainable, and the nickel price rise was malicious long for foreign investment.
Gem Co.Ltd(002340) , Metallurgical Corporation Of China Ltd(601618) and other listed companies involved in nickel business also responded that the company did not participate in nickel futures trading.
Nickel is one of the raw materials of power batteries. In recent years, with the rapid development of the new energy vehicle industry, the attention to nickel has also continued to rise. Driven by demand, several Chinese enterprises invested in nickel industry in Indonesia with rich nickel reserves.
Castle Peak holdings of storm center is a pioneer enterprise investing in Indonesia’s nickel industry. Its Indonesian Castle Peak Park has been successively identified as China’s overseas economic cooperation zone and bonded zone by the Chinese government and the Indonesian government. Many listed companies have chosen Qingshan as the project partner for their investment in Indonesia, and the latter’s existing resource advantage in Indonesia is an important factor.
nickel industry investment ” out sea ”
several listed companies join hands with Qingshan group to invest in nickel industry in Indonesia
Nickel is widely used in steel, nickel base alloy, electroplating, batteries and other fields, among which stainless steel is the largest field, accounting for about 70% of the global nickel consumption.
Another field of nickel application is the new energy field with high attention in recent years. Market opinion believes that the future demand for nickel will be driven by new energy vehicles. Ping An Securities once proposed in its previous research report that benefiting from the high nickel content of power batteries and the rapid development of new energy vehicles, the global and Chinese nickel demand is expected to grow at a compound growth rate of 4.0% and 4.3% from 2019 to 2025.
China is a big consumer of nickel, but its nickel reserves are not rich. According to the development plan for Nonferrous Metals Industry (20162020) issued by the Ministry of industry and information technology in October 2016, China’s nickel production in 2015 was 232000 tons, while the apparent consumption reached 1.02 million tons, and the external dependence of nickel was 86%. The plan proposes to encourage enterprises to carry out mutually beneficial and win-win industrial development and investment cooperation with relevant countries and regions through green space investment, M & A investment and equity investment, and steadily promote the construction of overseas copper, aluminum, nickel, rare and precious metals and other mineral resources production bases.
Statistics show that the regional distribution of global nickel resources is concentrated, and Indonesia has the richest reserves, accounting for 23.6%. Driven by the demand generated by the upsurge of new energy vehicles, several Chinese enterprises went to Indonesia to invest in the nickel industry.
According to the reporter of shell finance and economics, the main listed companies involved in nickel production in China include Zhejiang Huayou Cobalt Co.Ltd(603799) ( Zhejiang Huayou Cobalt Co.Ltd(603799) . SH), Gem Co.Ltd(002340) ( Gem Co.Ltd(002340) . SZ), Chengtun Mining Group Co.Ltd(600711) ( Chengtun Mining Group Co.Ltd(600711) . SH). Many enterprises are involved in lithium battery business, and nickel is one of the upstream materials of lithium battery production.
As for why Qingshan group was chosen as a partner, the announcement revealed that many listed companies are optimistic about the existing resource advantages of Qingshan group in Indonesia.
China’s Qingshan China group one belt, one road, has invested in Indonesia, the most abundant nickel reserves in the world. The Indonesian Castle Peak Park built in 2013 was identified by the Chinese government and the Indonesian government as an offshore economic cooperation zone and bonded area in China. It has become the largest production base of the whole You Hong industrial nickel ore producing stainless steel.
“Partner Qingshan group has been deeply engaged in the development of nickel resources for many years, has rich experience in Pyrometallurgical projects, and its technical level is in the leading position in the industry”, “signing partner Qingshan iron and steel has opened up territory and pioneered to have a number of nickel resource mines with rich reserves in Indonesia… Which has an important impact on the global nickel resource market”, There are many such expressions in the joint venture agreement with Qingshan group disclosed by listed companies investing in nickel industry in Indonesia.
two consecutive trading days of falling limit
Zhejiang Huayou Cobalt Co.Ltd(603799) : the high nickel price is unsustainable, and the nickel price rise is maliciously long for foreign capital
Under the influence of the Lun nickel market, market concerns also spread to a number of listed companies.
Due to the close cooperation with Qingshan holdings, Zhejiang Huayou Cobalt Co.Ltd(603799) has fallen to the limit for two consecutive trading days on March 8 and March 9.
On the morning of March 9, Zhejiang Huayou Cobalt Co.Ltd(603799) said through the media that the high nickel price is unsustainable. The company believes that this rise in nickel price is an obvious short squeeze and foreign capital seizes the loophole to do more maliciously, “At present, although some Chinese enterprises have metal nickel spot on hand, because these spot goods are not standard products and do not meet the delivery standards of London nickel in the futures market, they cannot be delivered at maturity. Therefore, taking advantage of the uncertainty caused by the war between Russia and Ukraine, foreign capital maliciously forced short positions in the futures market, forcing Chinese enterprises to burst their positions.”.
The reporter of shell finance and economics noted that the cooperation between Zhejiang Huayou Cobalt Co.Ltd(603799) and Castle Peak in nickel industry can be traced back to 2018.
In October 2018, Zhejiang Huayou Cobalt Co.Ltd(603799) announced that Huaqing company, a wholly-owned subsidiary, and QingChuang international, a Qingshan enterprise, signed a joint venture agreement on morowali lateritic nickel ore hydrometallurgy project in Indonesia, and planned to establish a joint venture company Huayue company to build a 60000 ton annual nickel lateritic nickel ore hydrometallurgy project in morowali Industrial Park in Indonesia. The authorized capital of the joint venture is US $50 million, and Huaqing company has subscribed US $29 million, with a shareholding ratio of 58%.
Zhejiang Huayou Cobalt Co.Ltd(603799) at that time, on the strategic significance of the above investment, said that participating in the establishment of a joint venture to invest in the development of nickel resources in Indonesia would give full play to their respective advantages, carry out nickel resource smelting and deep processing in Indonesia, and provide a reliable resource guarantee for the development of the company’s lithium battery new energy material business.
Since then, Zhejiang Huayou Cobalt Co.Ltd(603799) continued to work with Castle Peak to promote investment in nickel production in Indonesia. In May 2020, Zhejiang Huayou Cobalt Co.Ltd(603799) issued a new round of fixed growth plan, raising no more than 6.018 billion yuan through non-public offering of shares, and building projects with an annual output of 45000 tons of high nickel matte.
According to the fixed increase plan, the construction site of the high nickel matte project is in Indonesia, and the project partner is Qingshan group.
Zhejiang Huayou Cobalt Co.Ltd(603799) in March this year, he replied to investors that some production lines of Indonesia Huayue 60000 ton nickel metal nickel cobalt hydroxide hydrometallurgy project are currently in the stage of commissioning and trial production, and it will take some time for the project to reach production.
2 018 entered the nickel industry in Indonesia
Gem Co.Ltd(002340) : not involved in nickel futures trading, Indonesia project not affected
At noon on March 9, Gem Co.Ltd(002340) announced that the company did not participate in nickel futures trading and its operation was not affected by the nickel futures event.
In the announcement, Gem Co.Ltd(002340) also disclosed on the progress of its Indonesian project that the construction and operation of the Indonesian nickel resource project will not be affected by the nickel futures event. All procedures of the Indonesian nickel resource project have been approved by the Indonesian government. At present, the construction is progressing smoothly and it is planned to be put into operation before June this year.
Gem Co.Ltd(002340) also entered Indonesia’s nickel industry in 2018.
In September 2018, Jingmen Gem Co.Ltd(002340) subordinate company Gem Co.Ltd(002340) and Qingshan Group signed the joint venture agreement on the construction of the project of producing battery grade nickel chemicals (nickel sulfate crystal) (50000 tons of nickel / year) from Indonesian laterite nickel ore. The initial goal of the joint venture is to build a hydrometallurgical production capacity of no less than 50000 tons of nickel metal and 4000 tons of cobalt metal, Output 50000 tons of nickel hydroxide intermediate products, 150000 tons of battery grade nickel sulfate crystals, 20000 tons of battery grade cobalt sulfate crystals and 30000 tons of battery grade manganese sulfate crystals. In the future, adjust the product structure and expand the production scale according to the needs of the global market.
Gem Co.Ltd(002340) said at the time that signing the above joint venture agreement will comprehensively improve the company’s core competitiveness in front-end resource acquisition and back-end market share in the field of ternary material manufacturing, and will reduce the cost of the industrial chain of the company’s ternary material core business.
Metallurgical Corporation Of China Ltd(601618) ( Metallurgical Corporation Of China Ltd(601618) . SH), a central listed company whose main business involves nickel, responded on March 8 that the company currently has no nickel futures business.
