Hua you cobalt industry is really just an outsider?

2022-07-11 0 By

In the business focus, Hua you cobalt industry in the “demon nickel air war” is not necessarily innocent so simple.Recently, the London Metal Exchange “demon nickel rampant”, staged a forced empty Chinese nickel mining giant Qingshan Group “drama”.But another Chinese high-tech company, Huayou Cobalt, suddenly suffered a daily limit on March 8 and March 9. Huayou Cobalt, known as the White horse stock, lost 26.1 billion yuan in market value in just two days.Why will the “financial war” of the London Metal Exchange involve Huayou Cobalt industry?Is Huayou cobalt industry really just innocent?Why has nickel become such a flashpoint in the financial war?Is Huayou cobalt industry really just innocent?In the London Metal Exchange staged this futures metal nickel “long short war”, the source is because of the recent price of futures nickel, from March 7 after two days of the London Metal Exchange futures nickel prices can be seen, from 29246 dollars soared to 101365 dollars, up 247%.And in the “eye of the storm” in the Chinese enterprise Qingshan Group holding 200, 000 tons of nickel empty sheet, where can let foreign bears not jealous?Castle Peak would have lost tens of billions of dollars if it had traded on the lME’s short position.But green groups after a series of counter, foreign short a short plan did not succeed, on March 9, the London metal exchange announcement, said because of abnormal trading, so stop nickel futures trading, and at the same time, announced on March 8th after nickel futures trading is invalid, this is unprecedented in the history of the London metal exchange “eat” behavior.Huayou cobalt industry and in the “eye of the storm” in the Castle Peak group business has more intersection, so the “nickel futures multi-air war” also to Huayou cobalt industry, including a huge impact on the stock price suffered a continuous drop.Qingshan Industry is the world’s largest nickel and stainless steel producer (unlisted enterprise). It owns five groups including Qingtuo Group, Yongqing Group, Qingshan Holding Group, Shanghai Dingxin Group and Yongqing Shares, and has more than 300 subsidiaries. The sales volume in 2020 will reach 292.8 billion YUAN.It can be said that Castle Peak industrial business has spread to Indonesia, India, the United States and Zimbabwe and other places in the world.Established in 2002, Huayou Cobalt industry is a high-tech enterprise mainly engaged in the research and development and manufacturing of new energy lithium electric materials and cobalt new materials. In recent years, Relying on the global industrial resource layout, Huayou cobalt industry is slowly growing into a global leader in the cobalt industry.Huayou Cobalt industry is getting closer and closer to Qingshan Group in its developing business, especially in March 2021, Qingshan Group signed a high nickel matte supply agreement with Huayou Cobalt Industry and Zhongwei Stock.The three parties jointly agreed that Qingshan Holdings will supply 60,000 tons of high-grade nickel matte to Huayou Cobalt and 40,000 tons of high-grade nickel matte to Zhongwei Within one year starting from October 2021.This cooperation is very important for Huayou Cobalt industry, because the owner of Huayou Cobalt’s revenue and profit are mainly copper and cobalt business, contributing 78% of the gross profit, while other precursor businesses only contribute 19% of the revenue. However, the growth rate of Huayou Cobalt’s revenue has gradually declined over time.The reason behind this is that Huayou cobalt’s copper and cobalt business has previously been based on cobalt mining and domestic refining in Congo, but cobalt mining in Congo has added more uncertainty in recent years.According to the US Geological Survey USGS, 70 percent of the world’s cobalt reserves are concentrated in the DRC, while China has only 1.1 percent of global reserves.In contrast, 68% of the global cobalt mining volume in 2020 comes from Congo (DRC), and only 2% comes from China. From these data, it can be seen that the cobalt mining volume in Congo (DRC) accounts for a very high proportion in the world. If Chinese mineral enterprises put all their eggs in one basket, it is bound to cause great energy security problems.In recent years, with the rapid development of lithium battery industry, the supply and demand contradiction of cobalt metal in China as a key upstream raw material is increasing, European and American countries are stepping up the competition for mineral investment rights in Congo (DRC), and Congo (DRC) has just issued a new mining policy to increase the huge uncertainty, industry sources pointed out,Active global mineral resources allocation is the best choice to solve the bottleneck of China’s strategic mineral resources.In recent years, Huayou Cobalt has frequently mentioned in its corporate strategy “transforming from a global leader in the cobalt industry to a leading enterprise in the new energy lithium electric materials industry”, that is, reducing the proportion of cobalt business and increasing the proportion of nickel business.Because “the growth rate of nickel for batteries exceeds the industry, and the proportion of precursor and positive electrode is gradually increasing”, it can also reduce the dependence on cobalt ore.Therefore, it is natural for Huayou Cobalt to cooperate with Qingshan Group in the layout of nickel ore, another important element of new energy lithium electric materials.According to the latest data from the US Geological Survey, the world’s nickel reserves were estimated at 94 million tons in 2020, with Indonesia, Australia and Brazil the top three countries in the world.Indonesia, in particular, produced 760,000 tons of nickel ore in 2020, accounting for 30.4 percent of global production.Together with Zhenshi Group, Ningde Times and Qingshan Holdings, Huayou Co established IWIP to jointly develop Indonesia Weidabei Industrial Park project, which is the largest industrial park project for comprehensive development and utilization of nickel, chromium and iron ore resources in Indonesia.In its 2020 annual report, Huayou Cobalt also specifically mentioned this project.According to the company’s financial statement, the company started the nickel smelting project in Indonesia in cooperation with Qingshan Group in 2018, aiming to provide raw materials for the company’s transformation of new energy lithium electric materials.Not only Chinese enterprises are eyeing Indonesia’s rich nickel resources, but also European and American countries have long been eyeing this “fat meat”. Because of this, glencore forced Qingshan Group into positions in the “nickel futures long and short war”, one of the purposes of which is to “get its 60% equity in Indonesia’s nickel mines”.The analysis points out that the global mineral business layout of Chinese enterprises like Huayou Cobalt is exactly what European and American related enterprises are jealous of or afraid of, so it is said that Qingshan Group is in the “eye of the forced air storm”, rather than China’s overseas mineral enterprises are in the “eye of the storm”.Hua you cobalt industry is really not affected?The market is concerned about the possibility of “innocent” in the multi-air war, Huayou cobalt industry specifically released a clarification statement recently, the statement said that the company was not forced to close out positions, the current risk is controllable, the company’s production and operation is normal.The statement also specifically mentioned that the development projects of nickel and cobalt resources in Indonesia, such as the wet smelting project of crude nickel hydroxide from laterite nickel ore and the fire smelting project of high nickel matte from laterite nickel ore, are progressing normally.Actually, castle peak group suffered a forced air, huayou cobalt industry could not affected, because of huayou cobalt industry business and green groups have depth, huayou cobalt industry and castle peak group cooperation projects have not only limited to Indonesia nickel project, especially in the last few years of huayou cobalt and castle peak group in lithium-ion battery business cooperation.Nickel ore can not only be used to manufacture stainless steel products, in recent years the industry is more enthusiastic about its use in three lithium batteries, as new energy vehicles are pushed hot by capital, more and more mining giants have begun to layout in new energy projects.For example, an important direction of business transformation of Huayou cobalt industry is “new energy lithium electric materials”, and qingshan Group is the same, Qingshan Holdings has personally entered into the new energy industry, and launched cooperation with Huayou cobalt industry.According to public information, in February 2021, Huayou Cobalt announced that it would establish Huashan Nickel and Cobalt (Indonesia) Co., Ltd. with Qingshan Technology in Indonesia. Huayou Cobalt indirectly holds 68% equity of Huashan Nickel and Cobalt through overseas wholly-owned Sun Company.On May 14, 2021, Huayou Cobalt announced that it and Qingshan Technology set up a new import and export company in Tongxiang, with a registered capital of 10 million yuan and 70% stake held by Huayou Cobalt. Just a few days later, Huayou cobalt and Qingshan Technology again set up a cooperative company in Beijing, with a registered capital of 5 million yuan and 68% stake held by Huayou Cobalt.According to tianyan check information, castle peak technology is a subsidiary of Castle peak holdings, this cooperation is still a continuation of the cooperation between Huayou cobalt industry and Castle peak Holdings.Not only that, Hua you cobalt industry also directly into the castle peak holding headquarters of Wenzhou, in Wenzhou and Castle peak holding set up an import and export company, Hua you cobalt industry shares 70%, just a few days later, the two sides again in Tongxiang and Wenzhou respectively set up import and export companies.Within three months, Huayou Cobalt and Qingshan Holdings have established no less than five companies, and according to jiimian and other media reports, about 80% of Huayou cobalt’s long-term receivables may be related to Qingshan Holdings.According to industry researcher Wei Xinran analysis, in other words if a castle peak group suffered substantial losses caused empty, will jointly to huayou cobalt industry business in overseas layout, at the very least will affect huayou cobalt nickel ore business in Indonesia, the London metal exchange is short of foreign mining companies of China sea siege at a time, no one can possess.Is conflict between Russia and Ukraine just a symptom?The premium for spot nickel over three-month contracts has soared to around $700 a tonne, the highest since 2007, according to LME nickel futures. Why is nickel suddenly so popular?Many analysts believe that the reason behind the sharp rise in lunni prices is the Conflict between Russia and Ukraine, leading to increased market concerns about the bulk of the futures, so the reason behind the rise is really only that simple?From the perspective of reserves, Russia is indeed a major nickel mining country, but take a closer look at the 2021 Russian nickel production is only 250,000 tons, only accounting for 9% of the total international nickel production, the proportion in the world is not very high.As the conflict between Russia and Ukraine escalated, there was some impact on nickel supply, but it was not the main cause.The deeper reason behind this is that in recent years, the us dollar credit system has gradually collapsed, and more and more international currencies have been withdrawn from the virtual stock market and other investment targets, and turned to the offline physical commodities, which has become a sign that economists believe money is moving from the virtual to the real.The Conflict between Russia and Ukraine in February 2022 accelerated this process.As the largest energy and mineral export country in the world, Russia has directly pushed up the international prices of crude oil, natural gas and mineral resources, as well as the international prices of bulk commodities after being subjected to western economic sanctions.Jeff Currie, head of global commodities research at Goldman Sachs, has even written that he is “extremely bullish on commodities and thinks a decade-long supercycle is possible.”Against this backdrop, more and more money investments are moving away from stocks or other investment targets and into offline physical commodities trading.It is in this kind of background that the London financial Exchange just staged such a “multi-air war”, just gratuitously involved Chinese enterprises Qingshan Group and Hua you cobalt industry.If the reasons are financial, the world’s nickel shortage is a crisis in the supply chain.Nickel metal is not only an important material for the manufacture of stainless steel, but also an important raw material for ternary lithium batteries in the hot new energy industry. In addition, with the development of power batteries, nickel sulfate batteries with lower prices have become the fastest growing technology trend because cobalt prices fluctuate greatly and remain high all the year round.Since the beginning of 2021, there has been a clear upward trend in global nickel demand.According to the latest data from the WORLD Metals Bureau in the United States, the global nickel supply was still in surplus in 2020, but only one year later, the global nickel shortage reached 144,300 tons in 2021.That’s because global demand for nickel has exploded, and global stockpiles have continued to fall.According to the latest LME data, lune stocks stood at just 76,800 tonnes as of mid-March, apparently down by more than half from 190,000 tonnes at the same time last year, and have been falling on a weekly basis, particularly last week when global nickel stocks fell to a record low.According to li Zhuowei, an industry analyst, the current global nickel resource is in a pattern of low inventory, strong reality and weak expectation. The global nickel inventory continues to decline and is at a historical low, while the reality of supply and demand is strong, which cannot be alleviated for a long time.In addition, with the improvement of the epidemic situation, the demand for nickel at the production end is also gradually increasing, the global traditional mineral demand season is coming, for example, stainless steel manufacturers in many places in China are expected to increase the output of stainless steel in March, which further aggravates the demand vacancy of nickel mine.This happened in London metal exchange “forced air war”, behind reflects China’s enterprises and western enterprises in overseas mineral resources competition hots up, although this round of Chinese enterprises fight back to win, but the future will be more around the mineral resources in the game, like huayou cobalt industry of Chinese enterprises will face more challenges,Chinese enterprises should self-improvement is still a magic weapon to win the game.Welcome to # Huayou Cobalt Industry, read more wonderful content.Copyright, all rights reserved.If involved in infringement, please contact to delete.