Why commodity-trading scandals are multiplying

ThechoppywatersINGICBCINGICBCINGINGICBCAWOLlme of commodity trading have claimed another victim. On April 23rd it emerged that , a Dutch lender, was suing , China’s biggest bank. accuses of releasing export documents to Maike, a trader that once handled a quarter of China’s copper imports, without first collecting payment owed to . Shortly after this Maike ran out of cash, sinking hope of recouping the money. Now is seeking $170m from for its alleged error.Such disputes are becoming painfully common in the industry responsible for ferrying food, fuel and metals around the world. Last year traders stopped supplying a Chinese metals merchant after $500m-worth of copper went . In February Trafigura, a trading giant, booked $600m in losses after discovering that cargoes of nickel it had bought were in fact worthless stones. Last month the London Metals Exchange () found bags of stone instead of nickel at one of its warehouses.