Chinese metal traders lose over $144 million after key counterparty disappears

Chinese metal traders face over $144 million in losses after a key counterparty, known as "The Hat," disappeared. The situation has alarmed Beijing, highlighting risks in opaque trading practices. "The Hat," identified as Xu Maohua, allegedly defaulted on copper and other metal deliveries, breaking a payment chain involving state-owned SDIC Commodities. This incident follows previous scandals in China's metal market, including cases of large copper importer defaults and fabricated aluminum inventories, raising concerns about market stability.