🦧 where is the nickel tho
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🏢 who is trafigura?
trafigura group is a singapore-based commodity trading firm, focusing on base metals and energy
per bloomberg, the firm offers trading services for crude oil, gasoline, condensates, ores, refined metals, coal, ore, etc.
unlike many institutions that trade commodities futures that do not involve the physical transportation of commodities, trafigura's business is moving physical commodities and distributing in a reliable manner
⚠️ “systematic fraud”
trafigura found last week that it has fallen victim to a fraud (aka "containers came without nickels in them") costing more than half a billion dollars
as nickel's shown promising growth in demand throughout the pandemic (and perhaps for a while) as it is crucial in electric vehicle production, trafigura's been a huge winner in this pandemic and chaotic energy market period (caused by the russia-ukraine war)
the firm profitted $7b last year and $1.6b in 2020
trafigura believes the perpetrators of the fraud include companies controlled by the metals trader prateek gupta, including TMT Metals and subsidiaries of UD Trading Group
😔 it’s not the first time
2014: missing copper at the qingdao port - led to banks suing commodities trader to whom they had lent money
2020: collapse of singaporean oil merchant hin leong trading
trafigura said it's on track to still beating its profit from h1 of 2021, and the company's bond price only slumped ~2% following the news
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💡 something im thinking about
the demos here are quite solid (click image)