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Netherlands. Stones instead of 54 tons of nickel. The LME exchange announces an inspection of warehouses

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Sacks believed to contain 54 tonnes of the precious nickel stored in a warehouse in Rotterdam have been found to be filled with worthless stones, the London Metal Exchange (LME) said. This is a blow to the global nickel market at a time when the demand for this metal is growing rapidly, among others from electric car manufacturers.

Information about the missing nickel in one of the warehouses in Rotterdam was revealed on March 17 by the world’s largest metal exchange, the London Metal Exchange (LME). It turned out that the bags, which contained a total of 54 tons of nickel – a valuable metal used, among others, in for the production of modern batteries – in fact, they were filled with ordinary stones. The warehouse where it was kept informed the LME that the stored material “did not meet the standards of the exchange”.

54 tons of nickel were valued at USD 1.3 million, i.e. the equivalent of approximately PLN 5.6 million. The London Metal Exchange confirmed that it had already passed information about the stones instead of nickel to the company that owned the goods stored in the bags, but did not disclose its name. “WSJ” reminded that LME warehouses are obliged to weigh the metal that goes to them, and after verifying the goods, they are issued exchange certificates. After discovering the worthless stones, the LME withdrew previously issued certificates confirming the shipment of 54 tons of nickel.

The bags contained stones instead of nickel (illustration photo)Shutterstock

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SEE ALSO: The price of this metal has increased by more than 100 percent. The London Stock Exchange has suspended trading

Checking metal warehouses

However, it is not clear how the costly mistake that resulted in the cargo owner losing a lot of money. According to the log, there are two likely possibilities as to why the stones were in the warehouse: either the warehouse did not check the bags upon receipt, or someone removed the nickel from the bags once they had been placed in the warehouse.

The missing 54 tons of nickel “represents just over 0.1 percent of all nickel stored in LME warehouses,” notes the Wall Street Journal. However, the LME has asked all its warehouses to now check all remaining nickel stocks. She also said she was working with the operator to find out “what went wrong”.

The Reuters agency writes about “a blow to the world’s oldest and largest industrial metals market” when it hoped to “increase its liquidity” during the crisis in the nickel market. The demand for this metal is growing rapidly due to the huge demand for, among others, by electric vehicle manufacturers.

According to the WSJ, the discovery also comes as a blow to the London Metal Exchange itself in a “delicate time” where it also faces litigation from hedge funds and an investigation by UK financial regulators over its 2022 takeover of derivatives trading as well, according to the WSJ. nickel.

SEE ALSO: Scientists have created the strongest material. In space, it would be even better in an amazing way

Wall Street Journal, Vice

Main photo source: Shutterstock

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