Metal traders rocked by LC problems in India amid lockdown

March 26, 2020 / www.metalbulletin.com / Article Link

The trading of metals into India is likely to be severely affected by difficulties in opening letters of credit (LCs) now that the country is locked down to contain the spread of the novel coronavirus (2019-nCoV), sources told Fastmarkets on Wednesday March 25.

The Indian government imposed the 21-day nationwide lockdown beginning Wednesday, which includes strict curfew measures on the country's 1.3-billion-strong population.
LCs are commonly used by companies exporting metals to India and are designed to guarantee payment to a seller if all conditions in the letter are met. Buyers can also receive a refund in the event that they upheld their end of the deal but the seller was unable to deliver or perform.

"There is still a lot of paper pushing in Indian banking. For people to open...

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