Nasaac concerns to persist: die casters

Jul 09, 2013 | 05:29 PM | Nathan Laliberte

Tags  London Metal Exchange, Nadca, LME, Daniel Twarog, Rob Carey, Nasaac, Nathan Laliberte

NEW YORK — The London Metal Exchange’s proposal to alleviate long queues from its warehouse network will not solve apparent problems with the LME’s North American special aluminum alloy contract (Nasaac) or encourage its reacceptance as a pricing tool, domestic die casters and alloy producers told AMM.

The LME has proposed linking load-out rates to load-in rates at warehouses with queues longer than 100 calendar days in an effort to free up material and quell talk that the current system is broken (amm.com, July 1).

However, although concerns about the queues were one issue behind many domestic die casters’ and alloy producers’ decision to cease using the Nasaac contract as a pricing mechanism, market participants said they don’t expect the proposed warehouse changes to change their mind about the contract’s effectiveness overall.....





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