Transaction Overview
Metals trader Radiant World has agreed to sell a stockpile of approximately 38,000 tonnes of aluminium to STG Group, a move intended to generate liquidity for Radiant World.
Context and Pressure
The transaction follows heightened pressure on Radiant World after several banks and counterparties reduced or terminated dealings with the firm. Bloomberg reported that top commodity traders stopped trading with Radiant World amid allegations that the company had supplied falsified documents to banks. Radiant World has denied any wrongdoing, asserting that it conducts its business to the highest commercial and legal standards.
Prior Sale Offer
Earlier in the week Radiant World had offered the same 38,000‑tonne aluminium stockpile to a selection of trading houses at a discount to prevailing market values. The metal was located in or en route to ports in the United States, China and Europe.
Current Sale
The aluminium is now being sold to STG Group under undisclosed pricing terms, but the deal is expected to improve Radiant World’s cash position.