Warehousing hurts aluminum: Novelis exec
Jan 23, 2013 | 01:07 PM
| Andrea Hotter
CORONADO, Calif. Warehouse queues have caused aluminum premiums to rise and pose a threat to the industrys long-term future, Novelis Inc. vice president and Novelis North America president Tom Walpole said in a wide-ranging interview.
Financing deals that lock up warehouse metal have led to record-high aluminum premiums, Walpole said, and while Novelis has been able to pass the cost of those premiums on to its customers, the situation likely will damage the industry in the longer term.
"It is a financial play, having that much metal trapped in warehouses and not being able to use it," he said. "Weve been able to secure materials without having to go through the London Metal Exchange warehouse system, but when you think about the overall efficiency of the market, youre just trapping a lot of metal that could be used for manufacturing." ....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.