RE:RE:RE:RE:JPMorgan Leads Talks to Contain Nickel Crisis DamageIn theory, yes there are. But IMO the brokers, big banks and especially XG established short positions far in excess of these needs and for far different (for example, speculative) reasons.
from the article in googster1974's recent post:
https://www.wsj.com/amp/articles/jpmorgan-leads-talks-to-contain-nickel-crisis-damage-11647203014 Metal producers typically sell forward contracts on exchanges to lock in prices, known as hedging. Tsingshan, however, has both sold and bought nickel contracts over the past decade, people familiar with the company said, making the activity more akin to trading. Early last year, the company began to accumulate a short position, the people said. It made statements on its website and panels suggesting the market was flush and prices should fall. Tsingshan’s position was equivalent to having sold about 190,000 metric tons on the LME, traders, bankers and analysts estimate. That would be worth $9.1 billion at last Monday’s closing prices.
cheers,
mas75