LME: Guilty Until Proven Innocent in Goldman Sachs Aluminum Scam?

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The recent lawsuit pits the LME, Goldman Sachs, Glencore/Xstrata and JPMorgan against small aluminum manufacturers – Big Banks vs. Mom-‘n-Pop Metals.

For example, “Michigan-based Superior Extrusion, which makes aluminium tubes, bars and shapes for cars, pipelines, railings and furniture, says it was damaged by being forced to buy aluminium at an inflated premium despite global oversupply of the metal,” according to Reuters.

No matter what happens in this case, and whether the big financial players are found guilty or not, the consensus among analysts is that the LME’s reputation has now pretty much been shot.

Today’s Market Movements

The Indian aluminum cash price moved up 2.5 percent on Thursday, August 8, making it the day’s biggest mover.

* Get the complete prices every day on the MetalMiner IndX℠

The primary aluminum cash price weakened by 1.3 percent on the LME, settling at $1,731 per metric ton. On the LME, the aluminum 3-month price declined 1.1 percent to $1,778 per metric ton.

Chinese aluminum closed mixed on Thursday. After three essentially changeless days, the price of Chinese aluminum billet dropped 0.4 percent on Thursday. Following a two-day drop, the cash price of Chinese aluminum increased by 0.1 percent. The price of Chinese aluminum scrap remained essentially flat. The price of Chinese aluminum bar showed little movement yesterday.

Don’t forget to read July 2013 MMI analysis before August’s report comes out next week!