Nickel in London Metal Exchange (LME) warehouses has been swapped for stone, putting the London Metal Exchange's credibility to the test.

(Reuters)

[Financial Channel/Comprehensive Report] A warehouse of the London Metal Exchange (LME) in Rotterdam, the Netherlands, originally stored 54 tons of nickel in bags, but the bags were filled with stones. The market value of the nickel was about 1.3 million U.S. dollars (NT$39.61 million), and involves 9 LME contracts. Although LME did not disclose the name of the company that owns the nickel, people familiar with the matter pointed out that the owner of the nickel is JPMorgan Chase & Co.

According to comprehensive media reports, JPMorgan Chase bought the nickel a few years ago, and the bank registered it as deliverable under the LME contract in early 2022.

There is no indication that JPMorgan did anything wrong throughout the process.

Please read on...

Controlling the warehouse is Access World, a major logistics company whose parent company is miner Glencore. Access World did not immediately respond to a request for comment.

It's unclear whether the bags ever contained nickel, or whether the problem was the result of a mistake, theft, or fraud.

Under LME rules, warehouses are responsible for verifying and inspecting the metals, and Access World could be under pressure to do so.

The LME said it was working with Access World to find out what went wrong.

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