Under the deal being discussed, the roughly 10 banks that were Xiang Guangda’s counterparts for his nickel bet would extend enough credit to cover his mark-to-market losses.

"Market sentiment is bearish as supplies are starting to ramp up."

Russia's invasion of Ukraine has led to a surge in prices of metals used in cars - from aluminum in the bodywork to palladium in catalytic converters to the high-grade nickel in electric vehicle batteries.

The nation’s top economic planner told officials from major mining regions that it wants to boost domestic production capacity by about 300 million tonnes.

Chinese producers of nickel sulfate used in EV batteries stopped offering product due to the lack of price visibility.

Massive short positions held by Tsingshan have gone disastrously awry over the past few days.

Bank of America said prices at $150 a tonne are justifiable at present.

The global nickel market is in a pricing black-out, writes Andy Home.