Scandal squeezes funding for commodity sector

China's metals industry is grappling with tougher credit conditions that are likely to persist and spark consolidation after a financing scandal at Qingdao port roiled the market, said an executive at one of the world's biggest commodity traders.

Simon Collins, head of metals and minerals at Trafigura Beheer BV, said that miners, smelters and fabricators were facing a harder time getting credit since the Qingdao scandal broke in June.

"A lot of people in the industry are finding it difficult ... that is the new status quo and it will bring about further consolidation," he told Reuters.