Reported 7 months ago
A Chinese state-owned commodities trader, Wuchan Zhongda Group Co., faced losses after a shipment of copper worth nearly $20 million from Russia went missing. The 2,000 tons of copper purchased by the company from a Russian smelter never reached its destination and was instead listed as cheaper granite, potentially ending up in Turkey. The incident has raised concerns over fraud in the raw materials market, adding to the sector's reputation for scams. The trader's inability to locate the smelter in Russia has sparked internal checks by Chinese firms on their contracts with counterparties, highlighting the risks of dealing under advantageous terms during high metal prices amidst growing trade between Russia and China despite western sanctions.
Source: YAHOO