A handful of private firms dominate global commodities trading and finance.
The industry is poorly regulated--by design--and as a result entire supply chain systems for raw materials and logistics are highly vulnerable to malfeasance and criminal activity.
Recent scandals and crimes by Trafigura and other firms pose particular risk to Chinese downstream companies, who are the world's top buyers for minerals and metals, crude oil, and agricultural products.
A new state-owned company in Shanghai will vertically integrate the country's commodities trading with the rest of the world.
The “Shanghai Price” system will pull the world’s commodities trade out of London and New York, and further accelerate de-dollarization trends.
