It’s been a year since the US Senate held a hearing on logjams at metal storage facilities and rising fees. Since then, costs have gone up and waiting times for delivery at some sites are even longer, Bloomberg News reported.
The London Metal Exchange, which oversees more than 700 warehouses, has been blocked from easing delays by Moscow-based United Co. Rusal, which as the world’s biggest aluminum producer stands to lose from shorter backlogs. The LME issued a new rule that storage facilities with the longest wait times had to release more metal than they took in. Rusal blocked the measure in a UK court, and the exchange is appealing that ruling in a case that started in London today.
Wait times to obtain aluminum stretch to almost two years or longer in Detroit and Vlissingen, Netherlands, the two biggest sites for the LME-tracked metal. That’s up from about 15 months a year ago
The Indian aluminum cash price saw a 0.6 percent drop on Monday, July 28, landing at INR 121.30 ($2.02) per kilogram and making it the biggest mover of the day. The 3-month price of aluminum weakened by 0.3 percent on the LME, settling at $2,029 per metric ton. The cash price of primary aluminum saw a 0.2 percent decline on the LME to $2,008 per metric ton.
Chinese aluminum prices were flat for the day. The price of Chinese aluminum scrap saw little movement at CNY 12,250 ($1,978) per metric ton. The price of Chinese aluminum billet saw essentially no change for the fifth day in a row, remaining around CNY 13,590 ($2,194) per metric ton. The price of Chinese aluminum bar was unchanged at CNY 14,200 ($2,293) per metric ton. The cash price of Chinese aluminum continues hovering around CNY 13,450 ($2,172) per metric ton for the fifth day in a row.