Warehousing deals smooth aluminium price cycle - Michael Jansen
Apr 16, 2012 | 06:19 AM
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London Metal Exchange warehouse financing arrangements have helped to smooth the aluminium price cycle, according to Michael Jansen, managing director of the global commodities group at JP Morgan.
“What we would have seen [if that hadn’t happened] is that prices would have come down quite a lot, and then stayed down, retrenching capacity permanently,” Jansen told Metal Bulletin.
“These deals have allowed companies the breathing space to retrench capacity more slowly.”
The number of cancelled aluminium warrants in LME-listed warehouses has shot up in recent months, meaning queues to....
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