Published 18 March 2023 at 13.19
Economy. London's metal exchanges LME and LBMA have long been accused of manipulating down the worldmarket price of things like nickel and gold. Now the critics have had grist to their mill when the stock exchange was found to be delivering sacks of rock instead of nickel, reports Reuters.
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“The stock exchange has received information about that a number of physical nickel shipments from a specific facility of an LME-licensed warehouse operator have been subject to such irregularities,” the exchange said in a statement.
The total value of the nine contracts affected by the scandal was however, only $1.3 million, which has no effect on the world market price if the scandal stops there.
The LME has previously behaved problematically in the nickel market, including a year ago when the exchange suddenly closed trading in nickel for to save the Chinese bank Tsingshan Holding Group from bankruptcy during a so-called short squeeze against the bank.
LME and sister operation LBMA have an important role in world trade in metals. Among other things, because buyers who buy precious metals such as gold are usually anxious that what they actually get delivered is gold, and not, for example, gold-colored stone or other material.