Today in metals, a federal judge ruled that a zinc price-fixing lawsuit against Glencore and its New Orleans warehouse unit can move forward. Chinese giant Baosteel has cut prices for July deliveries as it feels the effects of heavy U.S. tariffs.
Glencore/Pacorini Will Face Zinc Warehouse Lawsuit
Executives at a metals warehouse firm owned by commodities group Glencore allegedly ordered workers to falsify documents in New Orleans to manipulate the zinc market, according to a complaint filed by zinc purchasers in a U.S. Federal Court. On Monday, a U.S. judge in Manhattan allowed a private antitrust lawsuit to go forward against two units of Anglo-Swiss Glencore Plc.
The suit accuses Glencore and its Pacorini Metals USA warehouse company of trying to monopolize the market for special high grade (SHG) zinc, driving up its price.
Her 62-page decision cited allegations made in the complaint filed by zinc purchasers alleging that Pacorini Metals USA created false bills of lading, which are receipts given by transporters confirming shipment of goods. U.S. District Judge Katherine Forrest in Manhattan said that the zinc purchasers had alleged sufficient facts for the case to go forward.
Baosteel Cuts Prices
China’s biggest listed steelmaker, Baoshan Iron & Steel (Baosteel), has cut its main steel product prices for July delivery, the company said in a statement on Monday.
Prices for hot-rolled coil and cold-rolled coil were lowered by $30.37 (200 yuan) and $27.32 (180 yuan) per metric ton, respectively, according to the statement.