Glencore severs ties with Chinese traders

Baar, Switzerland-based commodities trader Glencore Plc and Geneva-based IXM SA have both ceased it supply of metals to Liaoning, China-based metals merchant Huludao Ruisheng after the disappearance of $500 million in copper.  Glencore has transferred some of its existing stock from Qinhuangdao to alternative locations, including Qingdao. A total of 13 Chinese trading firms had a claim of 300 000 tonnes of Huludao’s copper concentrate which was worth  ¥ 5 billion in total, around $740million. Only one-third of that amount was in the warehouses in the port city of Qinhuangdao.  The Chinese firms involved are expected up to ¥3.3 billion in losses and last week sent a team to the city to investigate the situation and explore legal action.

Glencore shares were up 0.6 per cent at 477.27 pence on Friday morning in London, while its Johannesburg shares were down 0.2 per cent at R93.98.

Global Trading groups have stopped supplying Huludao Ruisheng following the scandal.