Metals traders have begun to feel the pinch after a turbulent period in commodity markets have caused some banks to step back from fully financing cargoes under letters of credit (LC).
Following rollercoaster price movements and controversial defaults by Singapore energy traders Hin Leong and Zenrock, banks are said by multiple sources to be less inclined to finance full cargoes and are holding back from extending fresh loans."Haircuts are increasing and what it means is that the balance, say 10%...