More details are emerging about the possible exposure of different companies to events in Qingdao port. On June 2, Metal Bulletin revealed authorities had blocked the shipment of some materials at the port as they investigated the allegedly fraudulent use of warehouse receipts multiple times to raise finance.
Metal Bulletin looks at the timeline of events so far.
May 2013: HSBC grants a banking facility of up to $30 million to Zhong Jun, the international trading subsidiary of Dezheng Resources, which is reported to be at the centre of a Chinese probe into a warehouse in Qingdao
June 2013: BNP Paribas Hong Kong signed alumina and aluminium supply contracts with Zhong Jun
July 2013: Zhong Jun accepts the banking facility and signs a “trade finance security agreement” with HSBC
August 2013: Zhong Jun and Standard Chartered (Hong Kong) file an “offtake contract assignment”, allowing for the offtake of aluminium supplied...