Chapter 137 Thirteen Thousand Tons of Copper

Just now, Zhuang Wei's assistant hadn't explained it clearly over the phone.

Su Yehao was also confused, wondering how a good futures trade could end up with a physical delivery of 130,000 tons of spot copper.

After he finished reading the files in his email.

One of them showed the trader's operation process, which allowed Su Yehao to understand the real reason.

The trader had indeed lost a lot of money while shorting, totaling almost $57 million.

It happened around the middle of July, last month.

He had already switched from short to long, stubbornly fighting with his former short allies, vividly demonstrating what blind pursuit of rising prices meant.

The main competitor of the traders in Su Yehao's family office was a Japanese copper company, which probably felt that the copper price increase was almost over. Therefore, the copper companies established huge short positions in futures to hedge their physical spot goods, in order to reduce potential risks.

They could make money from the spot market when copper prices rose, and from the futures market when copper prices fell, so at least they wouldn't lose too much on either end.

Before the option delivery.

Su Yehao's trader probably didn't expect that those Japanese copper companies would choose to deliver physical goods.

It was estimated that the copper companies knew that Su Yehao didn't have a copper product manufacturing business, and hoped to recover some losses through private negotiations.

Su Yehao was not yet clear about the specific process, as the detailed report hadn't been delivered to him yet.

However, some clues could be found from the specific transactions, allowing him to guess the general situation.

The maximum loss had reached more than $50 million.

Su Yehao didn't believe that the trader's supervisor was completely unaware of it. His risk control department wasn't just for show. Without the supervisor's help in covering it up, it would have been impossible to hide it from everyone.

Perhaps because he was afraid of being blamed, he simply went all the way.

He then prepared to make up for the loss by following the trend and going long, and then cover up the loss, so there wouldn't be too much of a problem as long as the accounts were balanced.

Finally, when reporting to Assistant Zhuang Wei, he also told some lies, describing the passive acceptance of goods as an active request for physical delivery, in order to minimize the matter.

If he got lucky and the copper price really went higher, the 130,000 tons of spot copper in his hands would still have a chance to appreciate in value.

From the results.

In the two-week long buying process, about $20 million in losses were recovered. If those Japanese copper companies had surrendered and not chosen physical delivery, it was likely that some more losses would have been recovered.

The losses were already lost, and pursuing responsibility wasn't the most important thing at the moment.

Su Yehao vaguely guessed that those copper companies were betting that he didn't need the physical copper. As for not being able to afford to buy it and defaulting, it was definitely not within their consideration.

After all, he was Su Yehao, with a net worth of billions of dollars. Betting that he couldn't afford more than $300 million... wasn't that crazy?

The problem wasn't big, but it wasn't small either.

Su Yehao remembered that during the subprime mortgage crisis in 2008 in his previous life, a trader at Société Générale had made unauthorized illegal transactions that almost led to the bankruptcy of the entire bank.

Although what happened under his watch didn't lead to such serious consequences, it certainly couldn't be taken lightly. Otherwise, if other traders followed suit, although it was possible to help Su Yehao make a lot of money, the risk of causing him huge losses was equally high.

Capable traders inevitably need to have enough confidence. They earn bonuses when they make money, but the losses are borne by the company, which requires the establishment of rules and regulations to constrain their trading operations.

Compared to the trader himself, Su Yehao felt that the supervisor who helped him cover it up should be punished more. It wasn't so much about the loss itself, but the fact that such a big thing happened and he didn't think about reporting it.

In fact.

Even if someone had told him before that he had lost more than $50 million in futures trading, Su Yehao would have probably just laughed it off.

Others need success to prove themselves, but Su Yehao wanted to use some investment failures to make his series of operations more realistic and credible.

One hundred percent success in all investment projects is a miracle that only the God of Wealth can do in person. He is now too dazzling, and can't wait to splash some dirty water on himself to hide his brilliance, which is the same reason as copying a test paper according to the answer and deliberately changing a few wrong questions to cover up.

Linda Yun had been slacking off since morning.

Taking advantage of Su Yehao's lunch break, she also took a nap.

She chatted with Su Yehao sleepily for a while, and asked in surprise, "What are you going to do with so much copper? Put it in the yard to build a pyramid, just for fun?"

"I told you to read more, but you insist on being ignorant. The Egyptian pyramids are large tombs, which are of the same nature as our graves. If I put this thing at home, wouldn't I be scolded to death by my grandfather and dad?"

Su Yehao laughed after saying that.

The older generation in his family were all superstitious, and there were many wealthy businessmen similar to them in the local area.

As a result, Wong Tai Sin (a Taoist deity in Hong Kong) even called him last time to ask if the seaside villas at Cyberport were for sale, or if he could get a villa on Emperor Crab Island. Judging from his tone, he was not short of money at all.

Whether his feng shui skills were good or not was another matter, but Wong Tai Sin was definitely living a prosperous life.

Su Yehao had seen photos of him online, and it was said that he had already bought a Rolls-Royce Phantom and was flirting with second- and third-tier models.

No wonder people always say that knowledge changes fate. A feng shui master who graduated from the University of Manchester and understands finance is indeed different.

He continued: "Copper, like gold, is a hard currency. Keep it in hand for a while. The market is so good, it is likely to continue to rise."

He didn't have much research on copper prices, but Su Yehao vaguely remembered that making cables and enameled wire was very profitable these years. For a while, the richest man in their city was in the cable business.

Considering the huge demand for infrastructure in the mainland these years, higher copper prices are a high probability event.

He still has idle funds in his hand, and it is no problem to exchange them for things and store them for a while, but if he sells them immediately, the $30 million lost will be lost. It is better to wait patiently and see.

Speaking of copper reminded Su Yehao of iron ore.

He asked Linda Yun to go to the assistant's office and get the investment information about Australian ore.

He had previously asked 5S Asset Management to invest in shares of Fortescue Metals Group in Perth, Western Australia. As for Rio Tinto, BHP Billiton and other giants, their market value was too high. Among them, BHP Billiton's total market value was more than $50 billion, and there was no possibility of controlling it.

Fortescue Metals Group not only lacks funds, but its scale is not too large. When he frees up his hands, Su Yehao may try to directly acquire it and cultivate it as a cash cow…