Qingdao Port says 400,000 tonnes of metals involved in financing fraud

(Qingdao Port’s throughput was 365 million tonnes last year, about 30 per cent of which was metal ore and coal. Photo: Xinhua)

Qingdao Port International said on Friday that about 400,000 tonnes of base metals were involved in the metals financing fraud.

It said the metal included 300,000 tonnes of alumina, 70,000 to 80,000 tonnes of aluminium ingots and 20,000 tonnes of copper.

The third-largest port in China has been plagued by a criminal investigation launched by the Chinese authorities against a shipment agency named Qingdao Hongtu. A cargo of base metals, including aluminium and copper, stored at the port under the name of Qingdao Hongtu was detained as part of the investigation.

It was suspected that the same cargo of metal was pledged multiple times for loans at different banks.

The investigation has prompted lawsuits from trading firms, warehouses and banks around the world, including HSBC Holdings and Standard Chartered.

Qingdao Port also said the quantity of the metal involved was very small compared to its annual throughput.

“However, since the case happened at about the same time as the company’s Hong Kong listing, it has caused great harm,” it said in a statement.

The port’s throughput was 365 million tonnes last year, about 30 per cent of which was metal ore and coal.

Qingdao Port said it was also affected by the slump in price of rubber, as it was the biggest port involved in importing rubber for China.

Rubber price declined to below 17,000 yuan (HK$21,400) per tonne from a peak of 27,040 yuan in February 2013. Before this, rubber imported through Qingdao accounted for more than 60 per cent of all rubber imports into the country.