If US Senator Carl Levin (D. Mich.) expected apologies and conciliatory remarks from Jacques Gabillon, a Goldman Sachs managing director called to testify before the Senate Permanent Subcommittee on Investigations, he did not get it.
Levin, the chairman of the subcommittee, said Goldman practices “merry go-round deals” in which aluminum is moved from location to location to drive up the prices paid for storage.
Gabillon disputed Levin’s accusations, saying long wait times for aluminum stockpiles had no affect on the prices for companies and consumers.
“When everything is said and done, you can say there is no correlation,” Gabillon said. He added that Goldman is committed to selling Metro International, its Detroit area network of metals warehouses.
“We are running a sales process right now and we have a variety of interest from companies in Europe, in Russia and in China,” Gabillon said during the question-and-answer portion of the hearing.
The cash price of primary Indian aluminum saw the biggest upwards shift for the day, rising 0.4% to close at INR 126.30 ($2.04) per kilogram on Friday, November 21. On the LME, the primary aluminum cash price fell 0.4% to $2,017 per metric ton. The aluminum 3-month price weakened by 0.2% on the LME, settling at $2,010 per metric ton.
Chinese aluminum prices closed flat for the day. Chinese aluminum scrap stayed flat at around CNY 12,950 ($2,115) per metric ton. At CNY 14,000 ($2,287) per metric ton, the price of Chinese aluminum billet was essentially unchanged. The price of Chinese aluminum bar saw essentially no change for the fifth day in a row, remaining around CNY 14,200 ($2,319) per metric ton. The cash price of Chinese aluminum was unchanged at CNY 13,660 ($2,231) per metric ton.