“To have a solution [for the warehousing queues], there needs to be a problem, and I don’t think this is actually a problem,” Tim Reyes, head of materials management at the US producer, told Metal Bulletin in an interview.
“We’ve got a series of free market forces at work that have led us to where we are,” he said.
These forces stem from the downturn of 2008, which caused a slump in demand for aluminium in key consuming markets and led to metal flowing into warehouses as low interest rates and a contango market structure encouraged financing deals.
Lengthy queues to get material out of warehouses have arisen in locations including Detroit, New Orleans and Vlissingen, leading to a huge industry debate over who is to blame and what can be done about it.
A significant portion of metal is sitting off warrant and not in warehouses approved for storage by...