Mitsubishi's China copper trader dealt with friends — and lost ¥13.8B

Mitsubishi Corporation RtM China was the Shanghai-based metals trading subsidiary of Mitsubishi Corporation, one of Japan's largest trading companies (sogo shosha). The subsidiary handled copper and other metals trading in the Chinese market, operating as part of Mitsubishi's global commodity trading network.

In 2024, Mitsubishi discovered that a trader at the Shanghai subsidiary had been conducting unauthorized copper transactions with companies closely related to the trader. The deals were conducted without proper approval. When counterparties failed to settle payments, the losses accumulated. Mitsubishi booked a loss of ¥13.8 billion (approximately $110 million) in the second quarter of fiscal 2024, and disclosed the incident publicly on December 4, 2024.

The trader was summarily dismissed and Mitsubishi filed a criminal complaint with Chinese public security authorities on charges of breach of trust. The company subsequently decided to exit all metal trading in China and close the subsidiary. Mitsubishi's stock fell 2.1% on the announcement. The incident drew comparisons to Trafigura's $1.1 billion fraud case in Mongolia and raised questions about governance at Japanese trading houses operating in China.