LME seen giving secondary smelters a lift

Sep 23, 2005 | 05:08 AM | Paul Schaffer

The profit margins of U.S. secondary aluminum smelters are probably benefiting from the buoyant influence of investment funds on London Metal Exchange pricing, an executive suggested Thursday.

"If the LME is inflated but scrap is running on supply and demand, does that mean the spreads will potentially widen? Is that maybe why we're seeing decent spreads right now?" said Fritz Gilbert, Cleveland-based director of operations, metal planning and procurement for Novelis Corp.

"As more and more non-supply and demand fundamentals play into the market, how that affects the scrap industry is going to be interesting to see," he told the annual Commodities Roundtable Forum in Rosemont, Ill., sponsored by the Institute of Scrap Recycling Industries.....

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