LORD COPPER: What economists do not tell you about the aluminium premium

In the last piece I published, I spoke about the aluminium market and the effect on it of the ever-growing warehouse-finance trade.

One of the issues I referred to was the way in which premiums had been driven higher and higher, even as the base LME price languishes. I made the comment then that a high premium-low price environment was causing problems in the market. In reply to that, economists have suggested that the high premium is in reality something of a saviour for the metal producers, as despite relatively low underlying prices, it has helped them to realise a more attractive final price for their metal. On the surface, that sounds like a reasonable...

Published

Lord Copper

September 27, 2012

12:10 GMT

London