Citibank withdraws from the physical metals market, reducing the trading team.

According to the news from a labor arbitration court in London, Citigroup is exiting the industrial metal physical trading business and has laid off several employees in its bulk commodities department. In recent years, Citigroup has grown into one of the leading banks in the commodity sector, posing a competitive challenge to traditional industry leaders such as Goldman Sachs, Morgan Stanley, and Macquarie. The bank had previously made a significant presence on the London Metal Exchange, engaging in aggressive financing transactions to take on physical metal delivery business, competing head-on with large trading firms and causing a stir in the market. However, according to a layoff warning letter disclosed in January 2026, Citigroup is currently downsizing its physical business layout, with metal physical trading no longer considered a core business. Citigroup's acting attorney, Jesse Krolczyk, bluntly stated that the bank has essentially shut down its metal physical business. Court documents submitted by Citigroup indicate that in January, the bank notified 11 employees in the bulk commodities department of the risk of layoffs, and several have since been formally dismissed. In an email statement, Citigroup stated, "This slight contraction of the physical business layout only applies to the marketing and trading sector of industrial metal physicals, and does not affect the operation of other business lines in industrial metals. Citigroup still retains the capability for industrial metal physical financing business, and maintains a large-scale business layout in precious metals and overall bulk commodities sector."