Qingdao 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. Keep up with the story as it unfolds here.



HOTLINE: Exchanges, banks discuss cryptosecurity over dinner to prevent next Qingdao
November 26, 2015 - 13:15 GMT Location:  London 
Executives from futures exchanges and major commodities-dealing banks attended a dinner in London on Wednesday November 26 to discuss technological solutions that might help prevent the next Qingdao. Read more

ANTAIKE COPPER CONF: Jinchuan expects 5% surplus in copper concentrate, balanced refined copper in 2016
October 22, 2015 - 03:56 GMT Location: Nanning
The global copper concentrate market will see a 5% surplus in 2016, while the refined copper market will be close to balanced, according to Guansu Jinchuan (Jinchuan). Read more

INTERVIEW: ARC Resources sees copper trading volumes decline on clients' credit concerns
October 21, 2015 - 15:04 GMT Location: London
China-focused copper trader ARC Resources expects its 2015 trading volumes to reduce on concerns about customers' credit and not because of the Chinese market slowdown. Read more

HOTTER ON METALS: LME Week shows crunch time is looming
October 15, 2015 - 17:14 GMT Location: London
It became increasingly clear as the annual LME Week progressed that the metals and mining industry is nervous, and feels that some kind of crunch time is looming. Read more

LME WEEK: Credit and counterparty risk
October 12, 2015 - 10:25 GMT Location: London
With markets under pressure, credit and counterparty risks have become key concerns for both bulk and minor metals. Read more

LME WEEK: A new global warehouse receipt system from the LME
October 12, 2015 - 09:30 GMT
The London Metal Exchange is offering a new electronic audit system for warehouse receipts called LMEShield that can in due course be used by warehouses that need not be LME registered. Read more

Copper prices survive China currency shock, but importers will be jittery
August 14, 2015 - 16:36 GMT Location: London
This week has been a historic one for the global currency markets, as the People’s Bank of China made a shock move to weaken the yuan, responding to international calls for China to release its grip on the currency. Read more

China’s unwrought copper, copper-fabricated product imports steady in July
August 10, 2015 - 06:56 GMT Location: Shanghai
China's copper imports remained steady in July, though buying activities warmed up during the month. Read more

Chinese share scare may further restrict lending to metal companies
August 04, 2015 - 13:22 GMT Location: Shanghai
Despite consecutive relaxations in monetary policy, Chinese metal companies have been suffering from tight liquidity this year, and a recent equity rout may only worsen the situation in the coming months. Read more

Spot commodities trading launched in Shanghai free trade zone
August 03, 2015 - 08:00 GMT Location: Shanghai
Spot commodities trading was launched at the Shanghai Free Trade Zone on Friday July 31, with copper cathode traded by Chinese and overseas companies on the first day. Read more

CHINESE SHARE SCARE: Equity hammering another blow to Chinese metal recyclers
July 09, 2015 - 14:45 GMT Location: London
Chinese metal recyclers will suffer from the recent share price crash in China because it will impede their capacity to raise finance by trading in equity markets and using shares as collateral, the non-ferrous president of the Bureau of International Recycling told Metal Bulletin. Read more

COMMENT: Things we learned at the MB Copper Recycling Conference
June 19, 2015 - 15:30 GMT Location: Barcelona
Metal Bulletin held its fourth annual Copper Recycling Conference in Barcelona last week. Here’s what we learned. Read more

EXPERT VIEW: Harry Liu asks whether there is an end to copper financing trade
June 11, 2015 - 08:18 GMT Location: Shanghai
Copper financing deals, the popular tool whereby importers use highly liquid commodities as trade collateral to obtain bank loans in China, have been talked and analysed by many and for a long time. Read more

LME WEEK ASIA: What did we learn?
May 22, 2015 - 14:50 GMT Location: Hong Kong
Metal Bulletin rounds up the hot topics at this year’s LME Week Asia in Hong Kong. Read more

Judgment in Mercuria v Citi case arrives; does not mark end of dispute

May 22, 2015 - 16:03 GMT Location: London
A judgment has been made in the UK High Court in the dispute between Citibank and Mercuria Energy over missing metal in Qingdao - but this may not be the end of the story. Read more

LME WEEK ASIA: Bourse to offer electronic warehouse receipts audit system
May 20, 2015 - 23:17 GMT Location: Hong Kong
The London Metal Exchange plans to roll out an electronic audit system for warehouse receipts to boost confidence in processes that were shaken after the Qingdao scandal. Read more

Henry Bath's plans to open in Shanghai partly motivated by Qingdao; will store more than 100k tonnes of metal

May 08, 2015 - 14:45 GMT Location: London
Warehousing company Henry Bath has said its decision to set up a direct presence in the Shanghai Free Trade Zone is partly a reaction to last year's Qingdao scandal. Read more

ACC MEETING: Exposure of China's shadow financing system undermined copper prices -SNL

May 08, 2015 - 14:19 GMT Location: Dana Point, California
Revelations about China's shadow financing system helped to trigger the recent decline in copper prices, an analyst at SNL Metals & Mining told this week's meeting of the American Copper Council (ACC). Read more

Mercuria's earnings rise 3% after JP Morgan oil, metals deal
April 30, 2015 - 13:31 GMT Location: London
Switzerland-based commodities trading house Mercuria achieved earnings before interest, tax, depreciation and amortisation (Ebitda) of $553 million in 2014, up 3% year-on-year, a source familiar with the matter told Metal Bulletin. Read more

Cathode overhang, stronger dollar increase copper scrap supply in Europe
April 23, 2015 - 13:02 GMT Location: London
An oversupply of copper cathode in the European market, the slide in the euro and a recovery in construction have all contributed to a steady loosening in discounts offered for copper scrap in recent months, market sources told Metal Bulletin sister publication Copper Price Briefing. Read more

HOTTER ON METALS: CESCO's April shower
April 16, 2015 - 13:01 GMT Location: Santiago, Chile
If copper industry participants were under any illusions regarding market sentiment, then the annual CESCO week in Santiago, Chile, has certainly given them an April shower. Read more

Al prices to be hit by continuing excess supply in Q2 - Sucden
April 14, 2015 - 17:32 GMT Location: London
Aluminium prices will continue to be weighed down by high levels of availability against demand in the second quarter, category I broker Sucden Financial has said. Read more

CESCO INTERVIEW: Copper surplus trimmed as supply issues hit industry, Antofagasta says
April 14, 2015 - 07:00 GMT Location: Santiago, Chile
Expectations for a copper market surplus this year have been trimmed significantly in the past few months amid a host of issues with existing and forthcoming projects, the ceo of Antofagasta told Metal Bulletin. Read more

IMPALA VS WANXIANG: The judgement in detail - what it means for now and what the next steps are
March 31, 2015 - 01:39 GMT Location: London
The judgement may have been handed down in the Impala vs Wanxiang case, recently heard in a London court, but the dispute between the two companies is not over. Read more

China steps up credit squeeze on metals sector, sparking demand fears for copper
March 26, 2015 - 00:37 GMT Location: Shanghai
Ten months on from the discovery of large-scale collateral fraud at Qingdao port in Shandong province, Chinese banks continue to take a dim view on lending to the copper industry, and to the metals sector overall. Read more

IMPALA VS WANXIANG: The outcome in brief
March 26, 2015 - 18:00 GMT Location: London
Metal Bulletin looks through the key points to arise from judgment in the Impala vs Wanxiang case, heard in London earlier in March. Read more

IMPALA VS WANXIANG: Impala's argument
March 17, 2015 - 13:05 GMT Location: London
As we wait for a judgment in the latest Qingdao-related case to come to court in London, Metal Bulletin takes a look at the evidence on both sides, starting with the case put by Impala Warehousing & Logistics (Shanghai) Co Ltd against Wanxiang Resources (Singapore) Pte Ltd. Read more

IMPALA VS WANXIANG: Wanxiang's argument
March 17, 2015 - 13:20 GMT Location: London
Following the conclusion of the Qingdao-relayed hearings in London in the case of Impala Warehousing and Logistics (Shanghai) Co Ltd vs Wanxiang Resources (Singapore) Pte Ltd, Metal Bulletin looks at the evidence on Wanxiang's side. Read more

Impala and Wanxiang fight over jurisdiction in Qingdao case in London
March 16, 2015 - 15:10 GMT Location: London
Impala Warehousing & Logistics (Shanghai) Co Ltd and Wanxiang Resources (Singapore) Pte Ltd are waiting for a judgment in the UK courts after a hearing last week on whether or not Impala can bring an injunction to stop proceedings arising from the Qingdao incident being heard in China. Read more

INTERVIEW: LME could offer Sword system externally, ceo says
March 13, 2015 - 19:08 GMT Location: Boca Raton, Florida
The London Metal Exchange is looking at ways to globalise its warehouse process and could offer its Sword system externally, its ceo Garry Jones told Metal Bulletin in an interview. Read more

Qingdao fallout sees Impala, Wanxiang return to UK court
March 11, 2015 - 14:39 GMT Location: London 
The fallout from last year's Qingdao warehousing scandal rumbles on as Impala Warehousing and Logistics (Shanghai) Co Ltd and Wanxiang Resources (Singapore) Pte Ltd return to court in London. Read more

Standard Chartered books $193m charge against Qingdao exposure
March 04, 2015 - 12:23 GMT Location: London
Standard Chartered booked a $193 million impairment on its exposure to the warehouse collateral fraud uncovered in Qingdao last year, the bank announced in its full-year results on Wednesday March 4. Read more

Eramet narrows losses to $181 million
February 23, 2015 - 17:31 GMT Location: London
Eramet narrowed its net loss to 159 million euros ($181 million) in 2015, citing productivity gains, as well as lower costs and capital expenditure. Read more

HOTTER ON METALS: Zinc: another false start?
February 13, 2015 - 00:36 GMT Location: New York
It's been a good few days for zinc bulls. Read more

New Orleans queue spikes as 87kt of zinc is ordered for withdrawal
February 12, 2015 - 08:00 GMT Location: London
The queue to withdraw metal from London Metal Exchange warehouses in New Orleans spiked on Wednesday February 11 as nearly 90,000 tonnes of zinc were cancelled in the Louisiana port. Read more

ICBC buys 60% of Standard Bank Group's London operations
February 03, 2015 - 03:56 GMT Location: Singapore
The Industrial and Commercial Bank of China (ICBC) has bought a 60% stake in Standard Bank, the Standard Bank Group's London-based markets business, for $690 million. Read more

MB APEX FULL YEAR 2014 BASE METALS: China will still rule roost in 2015 - base metals winner Meir
January 27, 2015 - 12:26 GMT Location: London
China, more than the USA or any other economy in the world, will continue to be the dominating presence in the base metals sphere in 2015. Read more

China's 2014 refined copper imports rise 12%
January 23, 2015 - 14:30 GMT Location: Shanghai
China's refined copper imports for 2014 rose 11.97% on an annual basis to 3.6 million tonnes, on accelerated volumes during the fourth quarter which offset the lower shipments following the Qingdao scandal in May. Read more

 WEEK AHEAD: Copper
January 11, 2015 - 21:15 GMT Location: Singapore
A favourable arbitrage between London-Shanghai improved demand for the red metal with Shanghai copper premiums rising and some expecting a more volatile market ahead of Chinese New Year next month. Read more

LORD COPPER: The year that was...
January 07, 2015 - 12:55 GMT Location: London
Well, it's that time again, for looking back at the passing year. Read more

REVIEW OF 2014: Chinese copper traders caught in the jaws of the credit squeeze
December 29, 2014 - 10:30 GMT Location: Shanghai
"Qingdao" was no doubt the most momentous word for copper in 2014 as the scandal continues to reshape the way the market works - and the year started painfully enough for small and medium-sized companies without it. Read more

REVIEW OF 2014: Behind the LME nickel stock surge in Asian warehouses
December 24, 2014 - 09:55 GMT Location: London
It was destined to be the year of nickel, but 2014 had its surprises. Read more

European zinc producers win increases in 2015 premiums
December 24, 2014 - 09:42 GMT Location: London
Zinc producers have successfully raised contractual premiums by $5-15 per tonne in 2015 supply deals signed with customers in Europe, market sources told Metal Bulletin. Read more

European nickel premiums under pressure as consumer demand wanes
December 24, 2014 - 00:00 GMT Location: London
European nickel premiums came under pressure this week, as consumer demand remained low in the lead up to Christmas. Read more

HOTLINE: Ten things we didn't expect to happen in 2014
December 23, 2014 - 12:30 GMT Location: London
Hotline takes a look back at the jaw-dropping moments of 2014. Read more

REVIEW OF 2014: Copper shorts triumphant thanks to two black days
December 19, 2014 - 14:10 GMT Location: London
With 2014 drawing to a close, copper prices are on course to post annual losses of more than $1,000 against their starting level of $7,400 per tonne, marking the worst yearly performance since 2010. Read more

What the Citi-Mercuria dispute revealed about Qingdao, metal financing
December 12, 2014 - 04:00 GMT Location: London
The arguments from banking firm Citi and trading company Mercuria over who should face the $270 million exposure from financing deals linked to metal held at Qingdao have now been heard, and the trial has drawn to a close, with a judgement due in January. Read more

Citi had 'no choice' but to push for early repayment on Qingdao metal
December 11, 2014 - 11:35 GMT Location: London
Citigroup had "no choice" but to call for early repayment of its repo deals with trading company Mercuria following the discovery of fraud at Qingdao, Citi's lawyer told a high court in London on Tuesday December 9. Read more

Mercuria claims Citi 'acted fraudulently' by calling for early repo payment on Qingdao metal
December 09, 2014 - 15:46 GMT Location: London
Citigroup "acted fraudulently" when it called for early repayment on its repo deals with Mercuria and delivered warehouse receipts for metal held at Qingdao without being certain of the metal's existence, according to claims made by Mercuria's lawyer in the high court in London. Read more

Citi-Mercuria case centres on Qingdao warehouse receipts, title
December 08, 2014 - 14:40 GMT Location: London
Does the delivery of warehouse receipts in China constitute the same thing as the delivery of physical metal? Read more

Trafigura says Qingdao scandal has damaged overall market confidence
December 08, 2014 - 11:06 GMT Location: Singapore
Trafigura said the Qingdao scandal in June has "impacted some partners and affected confidence in the industry as a whole". Read more

Citi had to react quickly to fill $270m repo hole after Qingdao
December 04, 2014 - 17:58 GMT Location: London
Citigroup's repo business would have been at threat if it had not swiftly resolved the hole in its balance sheet by pushing Mercuria to repay $270 million early from a financing deal linked to metal held at Qingdao, the centre of a fraud probe, Mercuria's lawyer told a London court. Read more

Shanghai copper premiums up as demand improves
December 04, 2014 - 10:29 GMT Location: Singapore
Shanghai copper premiums rose this week on increased demand as buyers restocked ahead of the year-end, market participants said. Read more

Post-Qingdao issues hamper settlement of 2015 copper premiums
November 19, 2014 - 10:37 GMT Location: Shanghai
The uncertainty caused by events in Qingdao earlier this year has hampered Chinese companies' ability to fix annual copper premiums and volumes with Codelco, the head of a very large trading firm said. Read more

INTERVIEW: Sucden Financial on China, copper price, post Qingdao
November 18, 2014 - 08:05 GMT Location: Singapore
LME ring dealing member Sucden Financial expects a 2015 average copper price of $7,000 per tonne, head of business development Jeremy Goldwyn told Metal Bulletin sister publication Copper Price Briefing. Read more

Copper premiums widen in Shanghai as some traders look to sell
November 13, 2014 - 08:26 GMT Location: Singapore
China copper premiums widened this week, with customers trying to destock before the year end in a tight credit environment exacerbated by the backwardation in prices. Read more

Shanghai zinc premiums under pressure on rising supply
November 11, 2014 - 10:33 GMT Location: Shanghai
Shanghai zinc premiums have traded lower as an improving arbitrage window has encouraged more outflow from Chinese bonded warehouses, sources told Metal Bulletin. Read more

China's copper imports reach 400,000 tonnes in October
November 10, 2014 - 04:19 GMT Location: Shanghai
China's copper imports rose 2.56% month-on-month in October on a narrowed arbitrage window between Shanghai and London, as well as lower Shanghai premiums. Read more

Asia copper premiums follow Shanghai drop
November 06, 2014 - 07:19 GMT Location: Singapore
Asian copper premiums fell on the back of a decrease in Chinese premiums earlier this week. Read more

COMMENT: The miseducation of the nickel market
November 04, 2014 - 10:58 GMT Location: London
This is a story of fundamentals - and various other factors that interfere with them. Read more

Copper premiums in Shanghai fall on backwardation, tight credit, sentiment
November 03, 2014 - 11:44 GMT Location: Singapore
Chinese copper premiums have dropped by $10-15 per tonne over the past week as more cargoes became available to the market and the backwardation on the London Metal Exchange deters buyers. Read more

Copper stocks up in Asia on diverted Chinese material, backwardation
October 31, 2014 - 11:05 GMT Location: Singapore
Copper stocks in LME warehouses in Asia rose by 56% in October, as credit conditions remain tight after the Qingdao port scandal in China and metal is diverted to warehouses in South Korea and Malaysia. Read more

Aluminium prices run into resistance at $2,000
October 28, 2014 - 18:35 GMT Location: London
Aluminium prices failed to break above the $2,000-per-tonne level at the end of trading on the London Metal Exchange on Tuesday October 27, but still posted gains on a close-to-close basis. Read more

Copper scrap markets slacken during post-Qingdao financing freeze, dollar strength

October 24, 2014 - 17:30 GMT
The supply of copper scrap has loosened globally in the wake of the Qingdao scandal, as bids from many Chinese importers buying from Asian and US markets have dropped away during a clampdown on lending to the metals sector. Read more

Analysts on nickel in China
October 24, 2014 - 13:02 GMT Location: London
Destocking in China, following the Indonesian export ban, and the tight financing situation will be the key factors for the nickel market in 2015, analysts said during a round table discussion in London on Thursday. Read more

China's refined zinc imports plunged in September
October 24, 2014 - 10:50 GMT Location: Shanghai
China's refined zinc imports halved in September on negative arbitrage and tightening credit, sources told Metal Bulletin. Read more

SPOTLIGHT: Post Qingdao 'making metal fresh'
October 21, 2014 - 08:35 GMT Location: Singapore
The Qingdao port fraud scandal continues to have a dramatic impact on metal financing, even months after the issue came to light. Read more

Trafigura's Impala in MoU with Citic; delisting some LME locations
October 21, 2014 - 20:30 GMT Location: London
Trafigura Beheer BV's Impala Terminals has signed a Memorandum of Understanding with a subsidiary of Citic Securities, China's largest investment bank, to create a joint venture warehousing, logistics, freight forwarding and terminals business in China. Read more
 
What we learned from the LME seminar
October 21, 2014 - 15:13 GMT Location: London
Following the London Metal Exchange seminar on Monday October 20, here are a few of the things we learned... Read more
 
The post-Qingdao financing environment - an analyst's view
October 20, 2014 - 08:12 GMT Location: London
The watchword in the wake of the Qingdao scandal is scrutiny - and expense. Read more

Edward Meir on Chinese demand, the Indonesia question and the post-Qingdao world
October 17, 2014 - 09:58 GMT Location: London
Edward Meir, analyst at INTL FCStone, speaks to Metal Bulletin ahead of LME Week and following the release of the company's LME market outlook report for 2014-15. Read more

Shanghai copper prices slip on demand worries, risk aversion
October 16, 2014 - 09:30 GMT Location: Shanghai
Shanghai Futures Exchange (SHFE) copper prices ended lower on Thursday on demand concerns and the fall in global stock markets. Read more

Chinese copper premiums steady ahead of annual talks
October 10, 2014 - 10:50 GMT Location: Singapore
Chinese bonded warehouse copper premiums were stable on Friday October 10, after a week-long holiday in China, as market participants prepare for annual benchmark talks during LME week in London. Read more
 
Before Qingdao (BQ) and Post Qingdao (PQ): how has the metal market changed?
October 01, 2014 - 15:31 GMT Location: London, Shanghai, Singapore, New York
Two new acronyms have entered the lexicon: BQ (before Qingdao) and PQ (post Qingdao). How was the metal trade different BQ? And what is like PQ? Metal Bulletin's reporters make the comparison. Read more

Low rents, incentives make Singapore, South Korea growing nickel hubs post Qingdao
October 01, 2014 - 10:30 GMT Location: London
London Metal Exchange nickel stocks in Singaporean and South Korean warehouses have surged since the Qingdao port probe hit the headlines in June, as warehouse incentives, low freight rates and low rents have made these regions attractive particularly for those looking to move material out of China. Read more

Shanghai copper premium rises ahead of holidays in Oct
September 15, 2014 - 10:32 GMT Location: Singapore
Copper premiums in Shanghai on a cif basis rose above $100 per tonne as the arbitrage between London and Shanghai markets improved and some buyers stockpiled ahead of public holidays in October. Read more

Qingdao warehouse receipts scandal involves 400,000 tonnes of material, port says
September 12, 2014 - 14:46 GMT Location: Singapore
Qingdao Port International has said that about 400,000 tonnes of material was involved in the financing fraud uncovered at the port in June. Read more

Qingdao fallout drags on Chilean cathode shipments to China
September 05, 2014 - 09:46 GMT Location: London
Copper cathode shipments from Chile to China dropped sharply in July as a result of tighter credit issuance in the wake of the Qingdao scandal, new data indicates. More

Citic Resources unit faces legal action over metals at Qingdao
August 28, 2014 - 05:52 GMT Location: Singapore
A Shanxi Coal International unit has filed a claim against a subsidiary of Citic Resources Holdings for $89.75 million plus interest for undelivered aluminium ingots, Citic Resources said. Read more

Qingdao Port sued by Pacorini, named in ABN Amro suit against Citic
August 18, 2014 - 05:13 GMT
Qingdao Port has been sued by Glencore's warehousing division over undelivered aluminium, and named as a party in a lawsuit brought by ABN Amro. More

Standard Bank takes $80m hit on Qingdao contracts
August 18, 2014 - 16:23 GMT Location: Johannesburg
Africa's largest lender, Standard Bank Group, took an $80-million (ZAR854 million) write-down from its exposure to suspected aluminium financing fraud in the Chinese port of Qingdao, the bank said on August 14. More

LME OFFICIALS: Metals knocked by fresh Qingdao fallout
August 13, 2014 - 14:40 GMT Location: London
Base metals prices fell back in Wednesday's official trading on the London Metal Exchange on poor Chinese loan data and fresh aftershocks from the Qingdao scandal. More

CLOSE TO CLOSE: Base metals prices weaker on Asian data, fresh Qingdao fears
August 13, 2014 - 18:11 GMT Location: London
Base metals prices kept falling in kerb trading on the London Metal Exchange on Wednesday August 13 amid poor Asian economic data and fresh repercussions of the Qingdao scandal. More

Shanghai copper price down as Qingdao fraud, tight credit weigh on sentiment

August 13, 2014 - 09:17 GMT Location: Shanghai
Shanghai Futures Exchange copper prices eased on Wednesday August 13 as sentiment took a hit on fresh concerns over the Qingdao warehouse receipts scandal and the tight credit situation in China. More

LME ASIAN WRAP: Copper price down as Qingdao concerns resurface
August 13, 2014 - 04:58 GMT
The London Metal Exchange copper prices were down during Asian morning trading on Wednesday August 13 as fresh concerns about the Qingdao warehouse receipts fraud emerged. More

BANKS: Credit Suisse eyes growth in trade finance as it winds down commodities trading

August 08, 2014 - 14:24 GMT Location: London
Credit Suisse is looking to build its client base in commodities trade finance even as it closes down its trading and sales operations, the head of the bank's commodity trade finance division told Metal Bulletin. More

China trade: Copper imports continue falling; aluminium exports at 3-yr high in July
August 08, 2014 - 05:29 GMT Location: Singapore
China's copper and copper products imports were down for the third month in July at 343,000 tonnes as demand for financing took a hit following the warehouse receipts scandal in Qingdao. More

Noble moves record zinc volumes in H1; profits jump from metals and ores
August 08, 2014 - 10:53 GMT Location: London
Noble moved record volumes of zinc in the first half of 2014 as it started marketing roughly half of Nyrstar's European output under a four-year marketing agreement. More

Timeline of events, and potential consequences
August 04, 2014 - 10:25 GMT Location: London
Metal Bulletin's timeline of how the Qingdao scandal has unfolded and how the industry has responded. More

Trader stuck in Qingdao probe seeks time to repay banks, report says
August 01, 2014 - 08:00 GMT
Zhong Jun Resources has asked a court in Singapore to reject a liquidation order sought by HSBC Holdings on the basis that it is a profitable business and can repay its liabilities, according to a report by Thomson Reuters. More 

MB APEX Q2 2104 BASE METALS: Qingdao 'not the death knell' for lending against metal - Meir
July 28, 2014 - 14:05 GMT Location: London
Undisputedly, the biggest story for base metals in the second quarter of 2014 was the disclosure of a probe at the port of Qingdao into alleged fraud involving the use of copper and aluminium warehouse receipts multiple times to raise finance. More

Shanghai copper premiums fall as banks' distance from financing deals hurts traders
July 25, 2014 - 10:45 GMT Location: Shanghai
Copper premiums in Shanghai on a cif basis and for cargoes tied to warehouse receipts drifted lower amid light trading this week, as banks further tightened credit and the arbitrage was unfavourable. More

Copper imports into China hit by Qingdao scandal; refined metal exports rise
July 22, 2014 - 06:56 GMT Location: Shanghai
China's refined copper imports were 255,041 tonnes in June, down 8.2% year-on-year as banks tightened credit for copper financing business amid the Qingdao fraud. More 

FACTS: China's base metal imports in June
July 22, 2014 - 06:30 GMT Location: Shanghai
Summary of China's base metal imports figures for June.
+ Refined copper shipments slumped to their lowest level since May 2013, on continued fallout from the Qingdao Port scandal, as banks tightened credit, quashing demand for imports.
More

Bank limits copper finance after ICBC moves to defer payment against LC
July 17, 2014 - 03:41 GMT Location: London
At least one western bank has stopped discount financing of copper into China after Industrial & Commercial Bank of China (ICBC) applied for the right not to settle a letter of credit it issued earlier this year, as a result of the Qingdao investigations, sources told Metal Bulletin. More 

TOP STORIES OF H1: Qingdao
July 16, 2014 - 03:06 GMT Location: New York
As part of Metal Bulletin's series looking back over the first half of 2014, Andrea Hotter looks at the key developments in the Chinese port of Qingdao. More 

Standard Chartered joins legal action against Chen Jihong over Qingdao
July 14, 2014 - 14:49 GMT Location: New York
Standard Chartered has joined the list of companies that have started legal proceedings against Chen Jihong, an executive at the centre of an investigation into alleged fraud in the Chinese port of Qingdao. More 

Standard Bank has $170m Al exposure at Qingdao; starts legal action
July 10, 2014 - 11:19 GMT Location: London
Standard Bank has confirmed it has an exposure of $170 million related to aluminium held in a bonded warehouse in the Qingdao port and has begun legal proceedings in the Chinese province of Shandong "to protect its position". Read more

Standard Bank has aluminium exposure in Penglai, sources say
July 10, 2014 - 20:10 GMT Location: New York
Standard Bank has exposure to aluminium in bonded warehouses in Penglai, China, sources familiar with the matter told Metal Bulletin on Thursday July 10. Read more

HOTTER ON METALS: Beware of copper's supply surprise
July 10, 2014 - 05:06 GMT Location: New York
Getting hold of copper is not proving to be much of a struggle, but just wait until demand really starts to pick up. Read more

LME OFFICIALS: Base metals prices slide on weak Chinese trade data
July 10, 2014 - 14:41 GMT Location: London
Base metals prices lost ground in official trading on the London Metal Exchange on Thursday July 10 after disappointing Chinese trade data dampened sentiment. Read more

HOTTER ON METALS: Metals in favour as ETP allocations exit agriculture
July 09, 2014 - 10:31 GMT Location: New York
Agriculture fell out of favour; energy and metals, particularly platinum and palladium, were in. Read more

Citic files claim with Qingdao court in bid to recover copper, alumina
July 08, 2014 - 12:35 GMT Location: London
Chinese state-owned company Citic Resources Holdings has filed a claim in the Qingdao Maritime Court against the operator of a bonded warehouse at Qingdao port in an attempt to recover its alumina and copper. Read more

SPOTLIGHT: What is causing the tightness in the Shanghai copper market?
July 04, 2014 - 17:19 GMT Location: Shanghai
China's domestic copper market is extremely tight, which has not only boosted Shanghai copper premiums but also supported copper futures. Read more

Qingdao uncertainty triggers SGX to call for cash settlement of rubber contract
July 01, 2014 - 09:25 GMT Location: Singapore
The probe into the use of warehouse receipts in Qingdao looks to have made it harder for an exchange that allows physical settlement of one of its contracts in the large port in China's Shandong province, Metal Bulletin has discovered. Read more

Shanxi Coal sues company at centre of Qingdao metal probe
June 27, 2014 - 11:22 GMT Location: Singapore
Shanxi Coal International Energy Group Co Ltd is suing Dezheng Resources and subsidiary and affiliate companies for $177.5 million in missed payments and interest, after buying alumina, aluminium and copper cathode for the company. Read more

Wholesale withdrawal of financing unlikely after Qingdao - BAML
June 26, 2014 - 11:27 GMT Location: London
The Qingdao warehouse probe will prompt banks to put more robust inventory management controls in place, but they will not withdraw from the business of lending against physical stock in China, according to Bank of America Merrill Lynch (BAML). Read more

Steinweg benefiting from location, staffing in Qingdao
June 24, 2014 - 16:37 GMT Location: New York
C Steinweg - Handelsveem BV is emerging in a strong position in Qingdao port as the investigation into alleged fraud enters its fourth week. Read more

LME urges China not to 'over-complicate' warehousekeeping rules in FTZ
June 23, 2014 - 05:40 GMT Location: London
Chinese authorities in charge of the Shanghai pilot free trade zone (FTZ) should avoid placing onerous administrative burdens on warehouse keepers in areas such as inventory reporting but hold them liable for any issues arising over ownership. Read more

Spot nickel premium offers sink in China as Qingdao weighs
June 20, 2014 - 06:45 GMT Location: Shanghai
Market of spot nickel remained in a mess this week after traders who have been financing nickel undersold last week on concerns over warehouse receipt pledge from banks. Read more

Shanghai free trade zone learns from Qingdao experience
June 20, 2014 - 10:49 GMT Location: Shanghai
The Qingdao port fraud has prompted the Shanghai Free Trade Zone (SFTZ) to launch an online system that will allow banks to track warehouse receipts used for loans, an official from the SFTZ told Metal Bulletin. Read more

Dezheng Resources received 15 billion yuan in loans - Caixin
June 19, 2014 - 16:19 GMT Location: New York
Dezheng Resources Holding Co Ltd and its subsidiaries had received loans of almost 15 billion yuan ($2.4 billion) from domestic banks in China, a report by Beijing-based media group Caixin said, citing banking sources in China. Read more

POLL RESULTS: Market believes Qingdao probe will lead to greater financing restrictions
June 19, 2014 - 14:04 GMT Location: London
The continuing difficulties at the Chinese port of Qingdao have sparked growing concerns among market participants about possible consequences. Read more

HOTTER ON METALS: Insuring against mysterious disappearing metal
June 19, 2014 - 07:59 GMT Location: New York
Mysterious disappearance or fraud - that is the question banks, warehouse firms and cargo owners active in Qingdao port may need to consider for insurance purposes. Read more

Over 100,000 tonnes alumina missing from Qingdao port, Citic Resources says
June 18, 2014 - 04:57 GMT Location: Singapore
China's state-owned Citic Resources has said that about 123,466 tonnes of its alumina that was stored at the Qingdao port is missing, stoking concerns about companies with exposure to metal financing at the port. Read more

HOTTER ON METALS: Qingdao may further slow Chinese FDI
June 17, 2014 - 18:21 GMT Location: New York
If inflows of foreign investment into China have been slowing as the country's pace of growth loses momentum, the Qingdao saga might make things worse. Read more

Qingdao port fraud probe prompted by inquiry into Western Mining Group
June 16, 2014 - 17:08 GMT Location: London
The investigation of the former chairman of China's privately-held Western Mining Group as part of a nationwide anti-corruption crackdown by President Xi Jinping helped trigger the probe into alleged illegal practices concerning warehouse receipts at Qingdao port, people familiar with the matter told Metal Bulletin. Read more

Chinese spot nickel premiums sink as Qingdao derails financing
June 13, 2014 - 11:20 GMT Location: Qingdao
Spot nickel premiums are being reported lower in China and European nearby futures spreads are easing as the warehouse receipt probe in Qingdao, China, spooks banks out of financing deals. Read more

High volumes of copper shipped out of China following Qingdao probe
June 12, 2014 - 14:20 GMT Location: Shanghai
Copper traders in China are moving stock to LME-registered warehouses in Korea, Malaysia and elsewhere as credit gets tighter in the aftermath of the Qingdao scandal. Read more

Aluminium pledged as much as eight times in Qingdao, sources say
June 12, 2014 - 05:43 GMT Location: New York
Around 400,000 tonnes of aluminium has been pledged in Qingdao Port's Danang subsidiary, but about perhaps as little as an eighth of it actually exists, people familiar with the matter estimate. Read more

HOTTER ON METALS: The genie of Qingdao
June 12, 2014 - 04:11 GMT Location: New York
It's an almost comical scene. A representative from a western bank or (supposed) owner of a cargo wanders around a busy port in China's Shandong province. Read more

Decheng reported to be at centre of Qingdao probe; associate company linked to western banks
June 10, 2014 - 17:55 GMT Location: New York
The company at centre of a Chinese probe into warehousing in Qingdao port is Decheng Mining, according to reports in the Financial Times and Reuters. Read more

HOTTER ON METALS: Qingdao may help LME's China warehouse cause
June 10, 2014 - 14:00 GMT Location: New York
The Qingdao investigation could be the trigger to push a network of London Metal Exchange warehouses across China back up the agenda. Read more

Citic says Qingdao metal probe may affect group
June 10, 2014 - 06:00 GMT Location: Singapore
China's state-owned Citic Resources Holdings said it owns alumina and copper at Qingdao port that it has sequestrated pending the result of an official investigation into alleged warehousing fraud. Read more

China lets yuan rise, relaxes campaign which caught copper financiers flat-footed
June 09, 2014 - 16:35 GMT Location: London
The People's Bank of China allowed the yuan to rise by the most in 20 months on Monday June 9, in an apparent step back from a sustained campaign to weaken the currency. Read more

Shanghai copper price down on weak demand, Qingdao probe
June 09, 2014 - 08:46 GMT Location: Shanghai
The Shanghai Futures Exchange copper prices moved down on Monday June 9 as sentiment dampened on lower metal imports last month and the ongoing fraud probe in Qingdao. Read more

Qingdao Port confirms fraud probe, says other operations normal
June 09, 2014 - 05:07 GM
Qingdao Port has confirmed that an investigation is taking place into an alleged fraud involving copper and aluminium. Read more

WEEK-IN-BRIEF: It's all about Qingdao
June 06, 2014 - 16:15 GMT Location: London 
"It'll all blow up. Or it'll all blow over." That was how the head of one LME brokerage summed up the possible repercussions of the situation in Qingdao at the end of the week. Read more

LORD COPPER: Qingdao - a step back in time?
June 06, 2014 - 12:15 GMT Location: London
The Goodwood Revival motor racing meeting in September every year advertises itself as "a magical step back in time", with its theme of cars and costumes from the heyday of the circuit. Read more

Shanghai copper market stricken by Qingdao crisis
June 06, 2014 - 11:34 GMT Location: Shanghai
The Shanghai copper market has been dealt a massive blow by the Qingdao crisis, according to Metal Bulletin sources. Read more

Qingdao Port shares fall on debut amid warehouse receipt probe
June 06, 2014 - 08:21 GMT Location: Singapore
Qingdao Port International's shares fell 2.7% on their Hong Kong Exchange (HKEx) debut on Friday June 6, even as the market continued focusing on the alleged fraudulent use of warehouse receipts multiple times for finance at the Chinese port. Read more

Standard Chartered reviewing metals financing to some Chinese firms
June 05, 2014 - 17:00 GMT Location: New York
Standard Chartered is reviewing its provision of metals financing to a small number of companies in China, as a result of a local probe into alleged fraudulent documentation, the bank said. Read more

Shanghai copper premiums dive again as Qingdao concerns put brakes on transactions
June 05, 2014 - 15:15 GMT Location: Shanghai
Shanghai copper premiums have dropped again on the warehouse receipt probe at the port of Qingdao in northeastern China, which has made some banks take a step back from the repo business that is integral to the country's copper market. Read more

Shanghai copper prices up despite Qingdao panic
June 05, 2014 - 11:20 GMT Location: Shanghai
Copper prices drifted higher on the Shanghai Futures Exchange on Thursday June 5, but investors are still bearish about future commodity prices as the Qingdao issue develops. Read more
 
 
Shanghai copper premiums keep sliding amid Qingdao fears
June 04, 2014 - 16:10 GMT Location: London
Copper premiums in Shanghai continued to fall on Wednesday June 4 with offer prices dropping as low as $90 per tonne on a cif basis as the probe into the use of metal for collateral in Qingdao pushed buyers to the sidelines. Read more
 
Shanghai copper price down amid Qingdao probe
June 04, 2014 - 09:46 GMT Location: Shanghai
The Shanghai Futures Exchange copper prices drifted lower on Wednesday June 4, as caution set in amid a warehouse receipt probe at the Qingdao port. Read more
 
Qingdao probe could trigger deliveries into LME, China as finance availability falls - Macquarie
June 04, 2014 - 12:50 GMT Location: London
The probe into the fraudulent rehypothecation of copper stored in warehouses in Qingdao could release about 150,000 tonnes of copper stored in Chinese bonded warehouses into the domestic and international markets, Macquarie estimates. Read more
 
LME copper spreads ease and SHFE's tighten on Qingdao probe
June 04, 2014 - 16:16 GMT Location: London
The backwardation in the cash-to-three-month spread has dropped from $100 to $50 in less than a week on the London Metal Exchange as fears mount about a crackdown on inventory financing in China. Read more

Standard Bank investigates potential irregularities in Qingdao
June 04, 2014 - 17:07 GMT Location: New York
Standard Bank Group has commenced investigations into potential irregularities regarding stocks of metal held in bonded warehouses at the Chinese port of Qingdao, a company spokesman said. Read more

LME OFFICIALS: Qingdao probe hits base metals prices, eases copper spreads
June 04, 2014 - 16:29 GMT Location: London
Copper prices fell and nearby spreads eased in Wednesday's official trading on the London Metal Exchange amid fears that China's inventory financing probe will spook banks into reining in lending. Read more

'Warehouse probe likely to affect copper financing' - Barclays
June 04, 2014 - 17:32 GMT Location: London
The Chinese port probe could dent activity in China's copper inventory financing trade, according to Barclays analysts. Read more

Qingdao probe puts alumina trade on hold
June 03, 2014 - 02:21 GMT Location: London
Traders holding alumina in Qingdao warehouses are scrambling to understand what effect an investigation into allegations of double- and triple-pledging of warehouse receipts will have on their capacity to access their material. Read more 

HOTTER ON METALS: Qingdao, China's real commodities credit crunch
June 03, 2014 - 02:16 GMT Location: New York
If you are a western bank or commodities warehousing firm knee-deep in Chinese repo-business, you should be worried. Read more

What Metal Bulletin learned today about the fast-moving events in Qingdao
June 03, 2014 - 16:34 GMT Location: Shanghai
More details have emerged on the fast-moving events in Qingdao. Metal Bulletin outlines today's developments. Read more

Chinese port Qingdao blocks metal shipments in warehouse receipt probe
June 03, 2014 - 02:20 GMT Location: Singapore, London, New York
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. Read more

QINGDAO PORT PROBE BRIEFING: The story so far about ban on moving metal
June 03, 2014 - 17:06 GMT Location: London
Authorities in Qingdao have blocked the shipment of some material from the Dagang terminal as they investigate the allegedly fraudulent use of warehouse receipts multiple times to raise finance. Read more

Qingdao iron ore shipments continue amid financing probe
June 03, 2014 - 21:48 GMT Location: London, Shanghai
Iron ore shipments from Qingdao in China have been largely unaffected by an investigation into metal trade finance irregularities at the port, sources told Metal Bulletin sister publication Steel First on Tuesday June 3. Read more

Shanghai copper premiums slump as Qingdao metal collateral probe continues
June 03, 2014 - 16:04 GMT Location: London
Shanghai copper premiums dropped by as much as $25 on Tuesday June 3 after authorities launched a probe into the pledging of bonded metal stored in warehouses in Qingdao as collateral for multiple loans. Read more
 
Chinese alumina prices rise as smelters restart production
June 03, 2014 - 09:44 GMT Location: Shanghai
Chinese alumina prices were up last week boosted by production restarts at some smelters, with the market closely watching developments at the Qingdao port this week. Read more

Qingdao probe puts alumina trade on hold
June 03, 2014 - 02:21 GMT Location: London
Traders holding alumina in Qingdao warehouses are scrambling to understand what effect an investigation into allegations of double- and triple-pledging of warehouse receipts will have on their capacity to access their material. Read more 

Chinese port Qingdao blocks metal shipments in warehouse receipt probe
June 03, 2014 - 02:20 GMT Location: Singapore, London, New York
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. Read more