Trafigura lost $577 million buying nickel cargoes that were actually carbon steel

Trafigura Group is one of the world's largest commodity trading companies, moving millions of tonnes of oil, metals, and minerals across the globe. In 2022, it purchased several large cargoes of nickel from a seller named Prateek Gupta. The shipments were supposed to contain high-grade nickel worth hundreds of millions of dollars.

Trafigura's trading desk became suspicious when the cargoes took longer than expected to reach their destinations, made extra port calls, and the seller delayed providing documentation. When Trafigura investigators physically inspected the shipments in Rotterdam in December 2022, they found the containers held carbon steel and other low-value materials instead of nickel. The company reported a $577 million loss in February 2023.

The London High Court ruled in January 2026 that Trafigura was the victim of a fraud orchestrated by Prateek Gupta, awarding $500 million in relief. The court increased the damages to $700 million the following month. Two Trafigura employees — including the head of nickel trading — were cleared of any wrongdoing. The case became a landmark example of how commodity traders can be deceived by fraudulent documentation when physical cargoes are not verified.