LORD COPPER: What to do about the Al market?

The aluminium market just doesn’t seem to get any healthier, despite lots of whistling in the dark by various participants.

It was in July of 2012 that Mr Deripaska, the power behind United Co Rusal, made his claim that the price would "very soon" be back at $2,400 per tonne.
At the time, it was somewhere in the $2,100/2,200 per tonne area, and has barely been higher since.
All through last year, various players told us that changes in the London Metal Exchange warehousing rules were what was necessary to regularise the market and bring an end to the stockpiling of metal and the concomitant premium being demanded for physical supply.
Well, the LME price is now just above $1,700 per tonne, the stockpiles show no real signs of easing and the premiums remain at painful levels for consumers – though they do not take the total price of aluminium up to that $2,400-per-tonne figure.
So all those predictions went well, then.

Added to...


Lord Copper

April 01, 2014

17:15 GMT