Tianjin port unit freezes iron ore stocks after finding illegal release from warehouse

Tianjin

A SUBSIDIARY of China's Tianjin port said some iron ore stored in a private warehouse had been illegally released by an undisclosed agent and trading firm.

The move led Tianjin Port No 5 Stevedoring Co Ltd to block the release of some iron ore stocks and has prompted checks by customers on the fate of their holdings of the commodity stored at the port.

Oversight of China's ports has been under scrutiny since a scandal last year at Qingdao port involving commodity financing where a private trading firm is alleged to have duplicated warehouse certificates to pledge a metal cargo multiple times as collateral for loans.

Using commodities as collateral to raise money is common in China and not illegal, but duplicating receipts to repeatedly mortgage the full value of an asset is fraud and c…