Chinese port Qingdao blocks metal shipments in warehouse receipt probe

The major Chinese port of Qingdao has blocked the shipment of some material as it investigates the allegedly fraudulent use of warehouse receipts multiple times to raise finance, sources told Metal Bulletin.

The stop on shipments began last week at the port, which is a major location for China's trade in aluminium, alumina, bauxite, iron ore and coal, sources told Metal Bulletin.
Warehousing companies, traders and banks are watching the situation closely since large tonnages of metal, iron ore and coal are tied up in financing deals, which play a big role in China's shadow lending sector.

At this stage it is unclear both how widely the ban on shipments has been applied at Qingdao, and whether it...

Published

Jethro Wookey

Shivani Singh

Andrea Hotter

June 03, 2014

02:20 GMT

Singapore, London, New York