STG buys large aluminium stockpile from Radiant World as trader seeks cash

Stock image for referential purposes only

STG, a trading company funded by principals of US hedge fund Squarepoint, has bought a substantial volume of aluminium from Radiant World as the commodity trader sells inventory to raise liquidity, according to two industry sources.

The exact volume purchased by STG and the price agreed for the transaction were not disclosed. However, sources said STG was acquiring a significant portion of the aluminium offered by Radiant.

Radiant World declined to comment on the transaction, saying it does not discuss commercial matters. Squarepoint also declined to comment.

Radiant holds up to 50,000 tonnes

A source familiar with the matter estimated that Radiant held approximately 40,000–50,000 tonnes of aluminium across multiple locations, including Asia and Europe.

The material was reportedly stored in private warehouses rather than exchange warehouses. Based on prevailing aluminium prices, the stockpile would be worth approximately USD 130 million to USD 165 million, although sources expected Radiant to sell the metal at a discount.

The inventory had previously been estimated at approximately USD 150 million, with Radiant reportedly seeking a sale at a small discount to market prices to improve its liquidity.

Because the aluminium is held outside exchange warehouses, the transaction does not necessarily represent a direct change in exchange-monitored stocks. It does, however, shift a large quantity of physical metal from one trading company to another.

Sources said potential buyers were bidding aggressively for the aluminium, indicating strong interest in securing physical supplies even as Radiant sought to raise cash.

To know the production, demand and consumption forecasts of aluminium casting, explore our report "Global Aluminium Casting Market 2026-2032: Plant Economics, Alloy Segmentation, Pricing Intelligence, Supply Chain Analysis & Strategic Recommendations"

Trading firm faces financing pressure

Radiant World, best known as an iron ore trader, also handles base metals including aluminium and copper.

The company has faced increased scrutiny in recent weeks over concerns relating to the validity of invoices provided to its banks. Deutsche Bank and KBC Group have reportedly frozen some of Radiant’s Singapore bank accounts, while other lenders have suspended credit lines.

Radiant has declined to comment on discussions with specific lenders but has said that it conducts its business according to the highest commercial and legal standards.

The reported aluminium sale appears to form part of a wider effort to convert inventory into cash. A separate source said Radiant was also looking to sell approximately 1,500 tonnes of copper.

The sale of both metals highlights how financing pressure can affect physical commodity markets. Traders may be forced to liquidate inventory even when market participants believe the material has strategic or commercial value.

Connect with verified aluminium extrusion buyers and suppliers through the AL Biz marketplace.

STG becomes buyer of physical metal

STG is backed by principals of Squarepoint, a US hedge fund. Its reported purchase gives the trading company access to a sizeable aluminium position distributed across several regions.

For Radiant, selling the inventory could provide near-term liquidity while reducing its exposure to storage, financing and commodity-price risks. For STG, the purchase provides physical aluminium that may be resold, delivered to customers or held as part of its broader trading strategy.

The transaction also underlines the importance of privately stored metal in the global aluminium market. While exchange warehouses provide visible inventory data, significant volumes are held in private storage and may change ownership without appearing immediately in exchange stock figures.

Neither Radiant nor STG disclosed the final volume or price of the deal. As a result, the estimated 40,000–50,000 tonnes refers to Radiant’s wider aluminium holdings and should not be treated as the confirmed quantity purchased by STG.

AL Circle is coming up with a new Magazine "ALuminium’s Frontline: OEM Edition 2026." Feature your brand and opinion in the edition