Commodity trading major, Trafigura expects to see a $577mn impairment after a two-month inquiry uncovered that metal cargoes it had bought did not contain the nickel that it expected. Trafigura has been trading with Indian businessman Prateek Gupta’s companies since at least 2015 where it has been buying nickel in containers already onboard ships, post which it sells them once the vessels reach their destination. Trafigura has now started legal action against Gupta and several companies connected to him that include TMT Metals and subsidiaries of UD Trading Group. Sources note that Trafigura’s head of nickel and cobalt trading, Socrates Economou is leaving the company.

Trafigura’s bonds were trading weaker with its 5.875% 2025s down 0.8 points to 98.22, yielding 6.62%.

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