and hedge funds are offering large volumes of duty-unpaid
aluminum as they seek to reduce their positions, traders told
AMM sister publication Metal Bulletin.
"Were in touch
with the banks, which we see offering huge
tonnage10,000-tonne clipsparticularly in Asia and
North America," one aluminum trader said.
Offers to his trading
company have increased sixfold since the London Metal Exchange
said in July that it proposes to tie warehouse load-in rates to
load-out rates starting in April to ensure that queues in
licensed warehouses fall to less than 100 days, the trader
pressured European premiums, although the tight European scrap
market, wide contango and the continued existence of the queues
have mitigated the downward movement. Duty-unpaid premiums
in-warehouse Rotterdam fell to $170 to $197 per tonne Sept. 27
from $175 to $205 previously as business could no longer be
concluded above $200 per tonne.
U.S. Midwest aluminum
premiums also edged down this past week due to a stalemate
between buyers and sellers caused in part by uncertainty over
proposed LME rule changes (
amm.com, Sept. 26).
A version of this article was first published in AMM sister
publication Metal Bulletin.