LME halts nickel trading; Tsingshan faces $8B trading loss amid nickel surge

TOP NEWS IN METALS & MINING

* The London Metals Exchange suspended nickel trading after three-month spot nickel prices more than doubled overnight to a record high of $101,365 per tonne in early trading March 8, S&P Global Commodity Insights reported.

* China's Tsingshan Holding Group Co. Ltd. is facing mounting trading losses, which stood at $8 billion as of March 7, sources familiar with the company told The Wall Street Journal, amid a surge in nickel prices triggered by the Russia-Ukraine conflict.

➤ Nickel price spike and LME trade halt presages extended nickel deficit

The unprecedented price rally threatens to keep prices for the base metal high and supplies low well into 2022, potentially driving up the cost of making steel and electric vehicle batteries at a time when inflation is already running high.

➤ JPMorgan warns about turbulence in trading markets, counterparty risk

"Markets are extremely treacherous," JPMorgan Chase & Co.'s head of global markets, Troy Rohrbaugh, said, citing spillovers from sanctions into commodities and other areas.

EARNINGS SPOTLIGHT

* Ivanhoe Mines Ltd. booked a full-year 2021 attributable profit of $55.2 million, swinging from a loss of $19.9 million in 2020.

* Fresnillo PLC's full-year 2021 profit increased 16.8% to $438.5 million from $375.6 million. The company's revenue for the period rose to $2.70 billion from $2.43 billion, boosted by higher precious metals prices, Dow Jones Newswires reported.

* Ero Copper Corp.'s fourth-quarter 2021 attributable net profit was $59.8 million, down year over year from $65.8 million, but its full-year 2021 profit swelled to $201.1 million from $51.6 million in 2020.

* Royal Bafokeng Platinum Ltd.'s net income for full-year 2021 increased 84.5% to 6.51 billion South African rand from 3.53 billion rand in 2020, with revenue up by 22.8% to 16.43 billion rand from 13.38 billion rand.

PRECIOUS METALS

* The Association of Mineworkers and Construction Union and the National Union of Mineworkers notified Sibanye Stillwater Ltd. of plans to launch a strike at the company's South African gold mines amid stalled wage talks.

* Open pit mining started at Red 5 Ltd.'s King of the Hills gold project in Western Australia. The operation is on track to produce first gold in the June quarter.

BULK COMMODITIES

* The creditors of Vale SA and BHP Group Ltd. iron ore joint venture Samarco Mineração SA once again rejected the company's new restructuring proposal, Reuters reported, citing a court document.

* U.S. Steel Corp. was fined over $1.8 million by the health department of Allegheny, Pa., due to hydrogen sulfide emissions from the company's Clairton coke plant, the Bradford Era reported.

* India expects output from coal mines owned by private companies to produce 350 million tonnes to 400 Mt of coal by 2030, which may reduce the country's reliance on imports, Reuters reported.

* The government of Colombia requested the country's coal producers to increase exports amid requests for additional supplies from European, Central American, and Caribbean countries, Reuters reported, citing Mines and Energy minister Diego Mesa.

SPECIALTY

* The U.S. ban on imports of Russian oil and energy products excludes uranium for nuclear power plants, a source familiar with the matter told Reuters. The U.S. power industry is reliant on Russia, Kazakhstan, and Uzbekistan for about half of its uranium supply for use in power plants.

* Rock Tech Lithium Inc. signed a preliminary agreement with Romania to select a location for a proposed lithium hydroxide converter with an expected capacity of around 24,000 tonnes per year, Dow Jones Newswires reported.

INDUSTRY NEWS

* A growing number of senior U.S. and European executives and former government officials have resigned from their posts on the board of directors of a number of Russia's largest companies, including PJSC MMC Norilsk Nickel, amid increasing pressure from business organizations and lawmakers at home, The Wall Street Journal reported.

* BHP Group Ltd. warned of a slowdown in global economic growth, due to accelerating inflation and a continued commodity price surge in the wake of the ongoing conflict between Russia and Ukraine, The Australian reported.

* MACA Ltd. reached a binding agreement with Position Partners Pty. Ltd. and SafeAI Inc. for the deployment of autonomous equipment at MACA's operations.

READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.

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