Aluminum supply glut threat said aggrandized
Jul 30, 2014 | 04:49 PM
| Nathan Laliberte
NEW YORK A narrowing contango in the aluminum futures market could lead to a large amount of the material hitting the physical market, although some industry players said that the threat of a supply glut was being trumpeted by traders at major banks looking to cash in on short-term profits.
The London Metal Exchange primary aluminum contract moved to a contango of $19 per tonne July 28 (amm.com, July 28), the first time it has done so since Dec. 17, 2012, when it was $52.50 per tonne, although it narrowed to $11 per tonne July 30, when the three-month aluminum contract closed the official session at $1,993.50 per tonne (90.4 cents per pound) while the cash contract closed at $1,982.50 per tonne (89.9 cents per pound).....
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