Metals financing under pressure due to probe
Jun 03, 2014 | 01:41 PM
| Andrea Hotter
NEW YORK Western banks and commodities warehousing companies knee-deep in Chinese repurchase deals should be worried.
Authorities in Qingdaoa seaport in Shandong province that is home to vast tonnages of aluminum, copper concentrate, alumina and iron orehave blocked some shipments as they investigate the allegedly fraudulent use of warehouse receipts multiple times to raise financing (amm.com, June 2).
The scenario has played out in non-London Metal Exchange warehouses for years, which is why banks will only finance commodities storage in China up to a certain limit.....
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