Chinese iron ore markets are enjoying a little respite today with Dalian futures up 1% rebar futures up 10 points. However, this is despite not because of the news flow with Chinese property still sliding and fresh news out of the Qingdao port inquiry looking quite unsettling. From Reuters:
Chinese commodities trader CITIC Resources Holding Ltd said on Wednesday that more than 100,000 tonnes of alumina stored at Qingdao port was missing, deepening fears that firms exposed to a metals financing scam at the port could face big losses.
…The alumina CITIC had been unable to secure has a value of around $43 million based on current market prices.
“The company has been notified that in the enforcement of the sequestration orders obtained by the group, the Qingdao court has been unable to sequester about 123,446 MT (metric tonnes) of alumina which the group has stored at Qingdao port,” the firm said in a statement to the Hong Kong stock exchange.
CITIC Resources said it had title to 223,270 tonnes of alumina and 7,486 tonnes of copper stored at the port pending payment by and delivery to buyers.
Expect trade finance for the commodity financing scams to tighten further.
