China's Tewoo Is Said to Sell Copper at Below-Market Rates
- Top Chinese trader unwinds financing deals with some banks
- Company held at least 50,000 tons of copper in bonded zones
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One of China’s top commodity traders, Tewoo Group, is selling copper at below market rates as it grapples with a liquidity crunch, according to people with knowledge of the matter.
The company, which is owned by the local Tianjin government, is offloading some refined copper stocked in bonded zones as it unwinds financing deals with some banks, said the people, who asked not to be identified as the information isn’t public. The metal is used as collateral in financing agreements or committed assets in so-called repurchase agreements with banks, they said.