The London Metal Exchange has discovered bags of stones instead of the nickel that underpinned a small handful of its contracts at a warehouse in Rotterdam, per Bloomberg.
The amount of metal represents just 0.14% of live nickel inventories on the LME, worth about $1.3 million at current prices, per Bloomberg.
“LME warehouse warrants used to be the gold standard of warehouse warrants around the world, treated as a near-cash equivalent,” John MacNamara, chief executive officer of Carshalton Commodities
The LME discovered the problem after it received reports that some nickel delivered out of a warehouse in Rotterdam contained bags of stones instead of nickel briquettes.
It is estimated to be 54 tonnes.
“We need the LME to function properly,” said Michael Widmer, head of metals research at Bank of America Corp. “It’s just not at the moment, that’s the problem.”
The London Metal Exchange has discovered bags of stones instead of the nickel that underpinned a small handful of its contracts at a warehouse in Rotterdam
3/17/2023
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