Citigroup
and Mercuria fight over US$270 million in missing metals from Chinese ports.
 |
| David Nealis President of Ceres Ltd with aluminum |
Citigroup
Inc and Mercuria Energy Group of Switzerland are fighting over payments related
to metal backed financing deals in China worth more than US$270 million in a
London court.
Citigroup
is calling for an early settlement from Mercuria to pay for the sales of metal
kept at the ports of Penglai and Qingdao which have gone missing from the
warehouses they were being stored in.
These
ports are currently under official investigation by the Chinese government and
the metal assets being stored at them have been frozen until the investigation
is finalized. Hundreds of millions of US dollars have been loaned out to
commodities traders in China with iron ore, copper, and aluminum used as
collateral, yet very little of the metal can be found in the warehouse. To add
to the chaos it is believed that the metal was utilized as collateral in
multiple loans at multiple banks.
You
would think with that much money at stake, that someone would have been keeping
an eye of things.
China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?
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Trading futures and options involves the risk of loss. You should consider carefully whether futures or options are appropriate to your financial situation. You must review the customer account agreement and risk disclosure prior to establishing an account. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of futures results. The risk of loss in trading futures or options can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition
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