Humbled Metal Traders Lick Wounds Amid Slump, Ponder Next Moves
- Shake-ups at top trading houses alter landscape for LME Week
- Drop in metal premiums, slower China growth hit trading firms
Metals Markets: China, Short-Selling and Fundamentals
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Metals traders often brag that they can make money whether prices rise or fall, but few are crowing these days.
That’s because they’re being hit by slowing growth in China and worsening credit conditions. Trading houses including Noble Group Ltd. and Trafigura Pte Ltd. have seen a series of high-profile departures and scaled back on warehouse operations. A collapse in premiums for stockpiled aluminum, a vital source of income for many, also cut profits.