Trafigura said hit by steel warehousing scandal

Oct 02, 2012 | 12:43 PM |

Tags  China warehouses, steel warehousing scandal, Trafigura, China Minmetals, Shanghai Minmetals Development, China Railway Material Group, Sinosteel

SHANGHAI — International commodities trading house Trafigura Ltd. is said to be among steel stockholders affected by the Chinese "ghost receipt" steel warehousing scandal.

Trafigura held several hundred tonnes of steel in a Shanghai warehouse but was told it wasn’t available when its representatives tried to withdraw the steel last month, sources told AMM sister publication Steel First, although the company has now taken possession of the material from the warehouse.

Informal warehousing deals, where traders offer steel as collateral for loans they can’t obtain from conventional banks, have rocked China’s steel industry in recent months as prices plunged and deals began to unravel.....

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