INTERVIEW: Metal Bulletin discusses the shape of the Al market with Rusal's Steve Hodgson

Following UC Rusal’s press briefing in London this week, Metal Bulletin caught up with Rusal Marketing ceo Steve Hodgson for a one-on-one discussion on the aluminium market and the company’s outlook.

Much will depend on government spending in areas such as infrastructure and the electrical grid, which would ordinarily be expected to ramp up at about this time of year, he said. Spreads Because of the spreads on the LME, the picture is bearish in terms of financing capability in the aluminium market, Hodgson said – but not for long. As long as the backwardations on the LME remain tight, premiums will fall, as their movements in recent weeks have been “almost entirely related to the spreads”. In turn, the falling premiums mean financing deals involving aluminium become less attractive, and the absence of financing for excess metal means it will end up returning to the open market, he said. But this is not a particular concern, according to Hodgson. “It will sort itself out. The backwardations [on the London Metal Exchange] will reverse when sufficient warrants are delivered to unwind that tightness,” he said. “I think overall,...


Claire Hack

April 29, 2015

06:55 GMT