Daily Management Review

London Metal Exchange finds bags of stones instead of nickel in Rotterdam warehouse


The London Metal Exchange (LME) found sacks with stones rather than nickel in a Rotterdam warehouse.

Kreepin Deth
Kreepin Deth
The LME was earlier informed that bags of stones, rather than nickel briquettes, were part of a shipment from a warehouse in Rotterdam. According to Bloomberg, the warehouse's operator is Access World. The business was previously owned by Glencore Plc, and Global Capital Merchants Ltd. purchased it in January.

Following an investigation, Access World discovered that the sacks of "nickel" (54 tonnes in total) were part of nine contracts. The LME claimed without identifying the owner that nine warrants were revoked and their owners were informed. According to one insider, the metal had been stored at the LME since the beginning of 2022.

Access World and Glencore representatives did not comment.

The LME system is regarded as being more secure because the LME exchange generates its own warehouse warrants and digitally transfers ownership of them. Companies that handle warehousing inspect products as they come in, including by weighing packages.

The warehouse may not have weighed the ones that were sent out, according to the LME, which stated that the bags obviously did not match the expected weight. Although the exchange asked authorized operators to double-check the nickel, the LME claimed there was no cause to think that other warehouses were impacted.

source: bloomberg.com