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May 22, 2015

Citi fails to win $270 million order vs Mercuria in metals financing case

LONDON (Reuters) – U.S. bank Citigroup Inc failed on Friday in a bid to win an order from a London court that would force trade house Mercuria to pay about $270 million in potential losses for metals financing deals in China hit by suspected fraud.

The complex case is one of a web of legal actions filed in the wake of a probe launched in May 2014 by Chinese authorities of suspected fraud at China’s Qingdao port, the world’s seventh busiest, and nearby Penglai.

May 18, 2015

Norilsk, investors to complete palladium buy from c.bank by year-end

LONDON, May 18 (Reuters) – Norilsk Nickel and other
investors aim to complete their purchase of palladium from
Russia’s central bank stockpile by the end of this year, a
deputy chief executive of the producer said on Monday.

Norilsk, the world’s largest palladium producer, proposed
such a deal to the central bank last year as part of its efforts
to guarantee stock availability for long-term customers and to
increase market transparency, adding that the pool of potential
investors and financing could bring in up to $2 billion.

May 13, 2015

China’s property troubles may hit copper after steel

LONDON (Reuters) – A slump in China’s property sector that has hit steel consumption may be a warning signal for industrial metal copper, which reacts with a time lag to the construction cycle.

The extent of the impact is not yet clear, but for some, falling steel demand is raising concerns about Chinese copper demand growth this year.

May 7, 2015

LME doesn’t plan fee rise on 2015 scale next year: executive

MELBOURNE/LONDON, May 7 (Reuters) – The London Metal
Exchange (LME) has no plans to hike trading fees in 2016 as much
as it did this year, when it sought to come into line with other
global exchanges, an executive said on Thursday.

The LME raised transaction fees by over 30 percent this
year, as its owner Hong Kong Exchanges & Clearing
sought to offset the costs of buying the world’s biggest
industrial metals market.

Apr 20, 2015

Aluminium premiums in Europe slide by half since peak

LONDON, April 20 (Reuters) – Surcharges for physical
aluminium in Europe have spiralled down by nearly half, good
news for industrial consumers such as beer can makers which had
bitterly complained about warehouse backlogs of up to two years
for delivery of the metal.

The unraveling of financing deals at warehouses, together
with heavy Chinese exports, has unleashed a glut of aluminium,
while demand remains poor.

Apr 8, 2015

Lead hits near 4-month peak as inventories fall

LONDON, April 8 (Reuters) – Lead prices on Wednesday touched
the strongest levels in nearly four months as inventories
dropped, while nickel in London bounced back from sharp falls in
the previous session.

Lead stocks on the London Metal Exchange (LME) fell by 7,525
tonnes to 223,850 MPBSTX-TOTAL on Wednesday and available
inventories that have not been earmarked for delivery were at
the lowest levels in 19 months.

Apr 1, 2015

Nickel bounces off near six-year low, China data edges up

LONDON, April 1 (Reuters) – Nickel bounced off its lowest
price in nearly six years on Wednesday after a modest
improvement in Chinese economic data and as some investors
betting on price falls locked in profits.

Nickel has spiralled lower on worries about lacklustre
consumption from the stainless steel sector, the dominant source
of global demand, as well as a record high inventories on the
London Metal Exchange (LME).

Mar 26, 2015

Trafigura, Wanxiang plan Hong Kong arbitration for China metals dispute

LONDON, March 26 (Reuters) – Trading house Trafigura
and China’s Wanxiang Resources are expected to agree
to arbitration in Hong Kong for a dispute linked to alleged
metals financing fraud after sparring over jurisdiction, lawyers
for the firms said.

Trafigura won a judgment on Thursday ordering Wanxiang to
halt court proceedings in Shanghai, but Mr. Justice Blair at
England’s High Court encouraged the two sides to hammer out an
agreement on arbitration.

Mar 23, 2015

Lead rises as available inventories dry up; copper firm

LONDON, March 23 (Reuters) – Lead prices climbed on Monday
on concern about potential shortages after a dramatic drop in
available inventories while a weaker dollar helped to support
other metals, with copper rising to its highest in more than two
months.

London Metal Exchange (LME) data showed one party was
holding up to 80 percent of inventories while the proportion of
available inventories tumbled to slightly more than 50 percent
from about 95 percent.

Mar 11, 2015

Flood of aluminum seen heading for market as financiers eye exit

LONDON, March 11 (Reuters) – A deluge of aluminum, held as
collateral in financing deals, could be released back onto
global markets as surging Chinese exports of the metal cause
surcharges for physical material to extend their dramatic slide.

Premiums – which lurched lower for the first time last month
after years of hitting record highs – are also facing pressure
from market reform aimed at untangling controversial storage
practices and the prospect of higher U.S. interest rates.