Citi cuts commodities staff and shuts physical metals trading business
Updated
Updated · Bloomberg · Apr 30
Citi cuts commodities staff and shuts physical metals trading business
11 articles · Updated · Bloomberg · Apr 30
A London employment tribunal heard the bank is retreating from industrial metals trading and has made a number of commodities team staff redundant.
The move marks a pullback from physical metals activity in London, where Citi had become an increasingly prominent participant in the market.
In recent years, Citi expanded into commodities, challenging Goldman Sachs, Macquarie and Morgan Stanley and taking London Metal Exchange deliveries through financing trades that competed with major trading houses.
Could Citigroup's retreat from industrial metals signal deeper risks in commodity markets, or is it a strategic masterstroke amid rising volatility and AI-driven change?
With AI adoption and geopolitical shocks accelerating, is the traditional model of physical commodity trading becoming obsolete for global banks like Citigroup?