At the same time, while the length of a queue may impact spot prices on the London Metal Exchange, it has no impact on the all-in price of aluminium, the bank added.
The comments form part of Goldman Sachs’ defence of its activities in physical commodities ahead of a two-day US Senate hearing scheduled to begin on Thursday November 20.
Goldman Sachs and its industry peers JP Morgan and Morgan Stanley are set to provide witness statements to senators in an effort to show their activities in physical commodities are as legitimate intermediaries that provide funding and financing, facilitate hedging and investment and, ultimately, help mitigate risk.
The majority of a 31-page document was given over to aluminium and the bank’s warehousing unit, Metro International Trade Services, which it acquired in 2010 and is currently in the process of selling.
Critics of the bank say its ownership of Metro allowed it...