LME changes will push metal off-warrant: Rusal
Dec 09, 2013 | 02:57 PM
| Andrea Hotter
NEW YORK The new London Metal Exchange warehouse rules will lead to a flow of aluminum to off-warrant storage, but wont address consumers complaints against high physical premiums, United Co. Rusal (UC Rusal) has said.
The warehouse reforms will not have a fundamental effect on the price for producers, UC Rusal deputy chief executive officer and director for strategy and business development Oleg Mukhamedshin told AMM.
This is due to the positive returns aluminum continues to provide for investors through financing deals, along with growing supply-demand tightness, he said.
"Metal currently sitting in LME warehouses is mostly owned by financial investors, which makes a good return of 8 percent per year out of the contango," Mukhamedshin said.....
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