Bloomberg: The Goldman Sachs Aluminum Conspiracy Was ‘Pretty Silly’

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Bloomberg News’ Matt Levine says the idea that moving aluminum in and out of warehouses in suburban Detroit caused prices to go up “is exactly false: There was a glut of aluminum, and the price went down.”

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Check out his detailed analysis of the Senate Permanent Subcommittee on Investigations’ report at Bloomberg View.

On Friday, November 28, Chinese aluminum scrap jumped up 9.2%, landing at CNY 13,000 ($2,117) per metric ton and making it the day’s biggest increase. On the tail of a three-day flat streak, the price of Chinese aluminum bar rose by 2.8%, settling at CNY 14,600 ($2,378) per metric ton. The cash price of Chinese aluminum fell 0.7% to CNY 13,620 ($2,218) per metric ton. After three essentially changeless days, the price of Chinese aluminum billet dropped 0.7% last Friday to CNY 13,900 ($2,264) per metric ton.

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The cash price of primary Indian aluminum declined 1.0% to INR 126.80 ($2.05) per kilogram. Following a two-day rise on the LME, the 3-month price of aluminum flattened at $2,064. After a couple of days of improving prices on the LME, the primary aluminum cash price held steady at $2,098.

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