Bottlenecks at London Metal Exchange registered warehouses in Malaysia owned by metals storage firm ISTIM UK are adding to the difficulties aluminum consumers in the United States and Europe face in getting the metal they need.
Bottlenecks at London Metal Exchange registered warehouses in Malaysia owned by metals storage firm ISTIM UK are adding to the difficulties aluminium consumers in the United States and Europe face in getting the metal they need.
Bottlenecks at London Metal Exchange registered warehouses in Malaysia owned by metals storage firm ISTIM UK are adding to the difficulties aluminium consumers in the United States and Europe face in getting the metal they need.
LONDON (May 28): Bottlenecks at London Metal Exchange (LME)-registered warehouses in Malaysia owned by metals storage firm ISTIM UK are adding to the difficulties aluminium consumers in the United States and Europe face in getting the metal they need.
Strong demand and tight supplies of aluminium have sent physical market prices in the United States to record highs, while in Europe prices are near their highest since Washington imposed sanctions on Russia s Rusal in 2018.
Queues have formed at ISTIM s Port Klang warehouses because traders and banks including JPMorgan and Royal Bank of Canada (RBC) want to take delivery of the large amounts of aluminium they have bought on behalf of clients, two sources with direct knowledge of the matter said.
Pendulum swings in favour of aluminum demand and prices
Aluminum alloys. Stock image.
Flourishing aluminum demand in China and the United States, higher freight costs and tight scrap supplies are expected to fuel further rises in prices of the metal used in the transport, packaging and construction industries.
Benchmark aluminum on the London Metal Exchange at around $2,050 a tonne is near the $2,080 hit earlier this month, the highest since October 2018 and up 40% since April when industrial activity and demand stalled due to coronavirus lockdowns.
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Since then, relaxing of restrictions and economic and fiscal stimulus, particularly in China, have boosted growth and demand.