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A mix-up at a Dutch warehouse led JPMorgan Chase to mistakenly purchase bags of stones thought to be nickel, according to a new report.
The report came from the Wall Street Journal on Monday after the London Metal Exchange revealed last week that there had been a mix-up with nickel supplies. However, it did not identify the owner of the alleged nickel bags or the warehouse where they were held.
FILE: A container cargo ship is seen in the port of Rotterdam on April 4, 2021 in Rotterdam, Netherlands. (Nils Weinstedt/BSR Agency/Getty Images/Getty Images)
A warehouse worker weighed the bags believed to contain more than 50 metric tons of nickel only to discover they were filled with rock. People familiar with the matter told The Journal that the warehouse is owned and operated by logistics company Access World, which is likely responsible for the bill. Access World is owned by miner and trader Glencore PLC.
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He said the arrival of the world port They check “bags of nickel briquettes guaranteed at all locations” but believe the case is “an isolated case and assigned to a single warehouse in Rotterdam”.
If the material were in fact nickel, an essential element used in steel and electric car batteries, the bags would have been worth about $1.3 million, or 0.14% of nickel stocks, Bloomberg reported.
The low volume indicates that mixing will have a relatively small impact on the metals markets. But the incident highlights the complexities of investing in a scandal-plagued industry subject to wild price swings and supply chain disruptions.
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JPMorgan Chase reportedly bought the portfolios years ago. The company did not respond to FOX Business’ request for comment.
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