August 23, 2019 / 7:49 AM / a month ago

Glencore, Trafigura pick up aluminium in Qingdao court auctions

BEIJING, Aug 23 (Reuters) - Commodity traders Glencore PLC and Trafigura have picked up a combined 70,479 tonnes of aluminium over the past week by winning online auctions of metal inventory dating back to China's 2014 Qingdao warehousing scandal, according to the e-commerce platform that hosted the sales.

The stock, being auctioned on a JD.com site by the Qingdao Intermediate People's Court, was formerly held by Dezheng Resources, the company accused of duplicating warehouse certificates to pledge metal as collateral for multiple bank loans. [tinyurl.com/yylx3ydu ]

The scandal rocked the metals industry and stung banks and trading houses for more than $3 billion. Dezheng founder Chen Jihong was handed a 23-year jail term in late 2018.

According to JD.com, Glencore paid 485.43 million yuan ($68.51 million) for 39,745.76 tonnes of aluminium ingots, while Trafigura spent 375.11 million yuan for 30,733.148 tonnes.

Glencore declined to comment, while Trafigura didn't immediately respond to a request for comment.

($1 = 7.0855 Chinese yuan renminbi)

Reporting by Tom Daly Editing by Kenneth Maxwell

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