The CCP Traders are Involved in “Oversold” Copper Concentrates, and Glencore Stops Supplying

According to the media, on August 12, because Communist China’s Huludao Ruisheng metals merchant “oversold” hundreds of millions of dollars of copper concentrate, Glencore, a well-known Swiss commodity trading and mining company, stopped supplying it.

It is reported that the Swiss mining giant Glencore discovered that Ruisheng Trading Company, registered in Huludao City, Liaoning Province, collateral a storage cite holding copper concentrate in Qinhuangdao to several companies. The report also pointed out that Ruisheng Trading also pledged 300,000 tons of imported copper concentrate to the remaining 12 Chinese traders, raising 740 million US dollars. Businesses involved include Jiangxi Copper International Trading Company, Wanxiang Resources, Zhejiang Materials Industry Group, Huafa Group in Zhuhai Special Economic Zone, etc. However, relevant traders said that there are only 100,000 tons of inventory in the warehouse of Ruisheng Trading, and another 200,000 tons of copper concentrate are missing, so the enterprises mentioned above may face losses of up to 490 million US dollars.

It is reported that Ruisheng Trading was in a deep debt crisis in the first half of this year, with a funding gap of over 1 billion yuan. Some market analysts said that the company may have illegally pledged the spot to multiple companies simultaneously due to the urgent need for capital turnover. As a result, there were not enough goods in stock, leading the consignor to a collective run.