After the nickel scandal, JP Morgan reflects on its future on metals

Posted Apr 6, 2022, 6:55 AMUpdated on Apr 6, 2022 at 7:03 am

New blow for the metals market. Already shaken by a spectacular “short squeeze” (forced liquidation) on nickel a month ago, it could now have to face the consequences of the disengagement of financial intermediaries scalded by the volatility of recent weeks.

Some banks have already suspended their commodity finance activities in Asia, including JPMorgan Chase. According to Bloomberg, the American bank would even think about the future of its operations in the sector. The management of the institution would have requested “due diligence” (audits) on certain customers, in particular metal traders and oil refiners. The risks associated with certain financings would also be being reassessed. JP Morgan is one of the main players in the commodities market and the leading financial intermediary in metals.

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