Chinese Metals Firm Reports Sharp Rise in Paper Losses on Nickel Futures Bet

Zhejiang Huayou Cobalt Co. Ltd. (603799.SH) reported a huge jump in liabilities in the first quarter, in a possible indication of how much last month’s nickel futures debacle has hit Chinese miners.

According to a late Wednesday exchange filing, Shanghai-traded Huayou posted nearly 1.6 billion yuan ($243.9 million) in derivative financial liabilities — which refers to any paper loss incurred by financial investments — in the first quarter, representing a nearly 14-fold surge year-on-year.