Traders in China Rush to Check Metal Stocks on Pledging Concerns
- Glencore and Trafigura among firms checking aluminum stocks
- Traders claim metal inventory they lent against may not exist
This article is for subscribers only.
Traders are rushing to check that the metal they hold in Chinese warehouses really exists, as allegations of irregular financing trigger a widespread loss of confidence in the world’s largest aluminum market.
Global commodities powerhouses Glencore Plc and Trafigura Group are among traders checking their aluminum inventories after several domestic trading firms claimed last week they were duped into providing loans against artificially inflated stockpiles, said people familiar with the matter. At least three metals warehouses in China have also suspended operations while they account for their inventories.