| The mad dash by banks and traders to see who owns what metal inventories at Qingdao port should help bring a swift, and much-needed, end to the practice of using commodities for credit. For the past few years, one of the known unknowns in the mainland's metal markets has been the use of imports as collateral to secure financing for investments in higher-yielding assets, such as construction.
This has been most apparent in copper, with iron ore, gold, soya beans and other commodities also affected, with the consequent build-up of so-called dark inventories, which are stocks being held for purposes unrelated to supply and demand fundamentals...............................................Full Article: Source
|