Novelis Urges LME to Solve Warehouse Issues Quickly

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Time to speed it up? Novelis thinks so. “Novelis Inc Chief Executive Officer Phil Martens on Monday urged the London Metal Exchange to take more aggressive steps to solve its warehousing policy problems, which metal buyers said have inflated physical aluminum prices,” reports Thomson Reuters.

“In an interview with Reuters, Martens said the world’s largest metal exchange should increase delivery rates and further reduce wait times for metal stuck in queues, joining a years-long debate over the LME’s warehousing policy that has intensified since the start of the year.”

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“His comments come just weeks after aluminum premiums , paid for physical delivery on top of the LME benchmark, shot to record highs in January, defying most market expectations of a drop in physical prices because of sweeping LME rule changes due to come into effect in April.”

In metal price news for aluminum…

On Monday, February 10, the day’s biggest mover was the aluminum cash price, which saw a 1.4 percent increase on the LME to $1,678 per metric ton. On the LME, the 3-month price of aluminum inched up 1.3 percent to $1,719 per metric ton. The Indian aluminum cash price weakened by 1.3 percent.

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Chinese aluminum prices closed flat for the day. The price of Chinese aluminum scrap continues to hover for the fifth day in a row. The price of Chinese aluminum billet saw little movement. For the fifth consecutive day, the price of Chinese aluminum bar held flat. The cash price of Chinese aluminum was unchanged.