The North American Die Casting
Association (Nadca) has submitted formal testimony to the
Senate Banking subcommittee on Financial Institutions and
Consumer Protection, which is looking into the ownership of
metals, particularly aluminum, by warehouses and financial
"This is an important
issue which warrants significant public and regulatory
scrutiny," Nadca president Daniel L. Twarog said in a
statement. "We applaud the committee for looking into possible
market manipulation, which impacts everything from autos to
toys to airplanes."
aluminum die casting content is expected to grow to more than
143 pounds per vehicle in 2020 from 114 pounds per vehicle in
2012, according to Nadca, while global aluminum consumption
will increase to nearly 120 million tonnes by 2025 from 58
million tonnes in 2015.
In February, the queue
to remove metal from London Metal Exchange warehouses in
Detroit reached nearly 400 days, according to LME data. In
June, some users reported 16-month wait times for aluminum from
order to delivery, according to Nadca.
"Long lead times,
supply shortages, outmoded contract terms and illogical pricing
contribute to instability in the aluminum market. This drives
down manufacturing productivity and encourages customers to
seek overseas suppliers," Twarog said.
Concerns over wait
times and ongoing issues with the North American special
aluminum alloy contract (Nasaac) was a topic of discussion
during a May meeting between Nadca and representatives of the
amm.com, May 22).
considered withdrawing its support of Nasaac and remains
concerned about terms applied to aluminum contracts," Nadca
said Jan. 14.