Variation margin calls drove China copper smelter insolvent

Ill-considered futures trade claims first victim of tighter post-Qingdao financing climate

Copper tubes

An inability to pay variation margin calls on its outstanding copper futures positions was the catalyst for the insolvency of Northern China-based copper smelter Yantai Penghui Copper Industry at the end of December.

Yantai had built up large long positions in copper futures, but was caught out by a sudden reversal in the commodity's price at the start of December and was unable to meet its subsequent margin calls. Banks have slashed their financing of China commodity firms following large

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

If you already have an account, please sign in here.


Want to know what’s included in our free registration? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here