Mitsui to shut precious metals business in London, New York – sources

12th October 2015

By: Reuters


Font size: - +

LONDON – Mitsui will close its precious metals businesses in London and New York at the end of this year, two sources familiar with the situation said, owing to sliding commodity prices and more stringent regulation.

"Mitsui is shutting down precious in London and New York in December," one source said.

A spokesperson for the Japanese trading house declined to comment.

Mitsui, which started trading precious metals in 1970, is the latest to join a retreat by banks and brokers from some commodity markets as profits and prices tumble on concern about slowing Chinese economic growth.

Mitsui & Co Precious Metals, a wholly-owned subsidiary of Mitsui & Co incorporated in the US, has a team of about 50 trading gold, silver, platinum, palladium, rhodium, ruthenium and iridium from offices in Hong Kong, London and New York.

The sources did not know how many jobs would be affected across trading, sales and research.

Mitsui trades precious metals on the Tokyo Commodity Exchange in Japan and also has offices in Hong Kong.

"The decision will affect global operations, as it will reduce volumes," the second source said.

The trading house also participates in the twice-daily auction setting the London silver benchmark run by the Chicago Mercantile Exchange and Thomson Reuters. Its withdrawal would leave five banks to set the price.

Last month, Mitsui was included by Switzerland's competition authority WEKO on a list of banks being investigated for possible collusion over the pricing of precious metals.

Mitsui not only joins Western banks, including Barclays and Deutsche Bank, in cutting back on commodities, but also Mitsubishi UFJ Securities International, which withdrew from its London-based commodities business, last year.

Commodities trading revenue for ten of the world's biggest banks continued to fall to $2.6-billion in the first half of 2015, compared with $3.5-billion in the same 2014 period, according to estimates from analytics firm Coalition.

Edited by Reuters




SoToxaTM - Mobile test system

Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa


Latest Multimedia

sponsored by

Resources Watch
Resources Watch
19th June 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.267 0.304s - 106pq - 2rq
1: United States
Subscribe Now
2: United States