The World Waits As UC Rusal-LME Aluminum Warehousing Appeal is Heard in London

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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.

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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.

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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.

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