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Aluminium prices driven by financials -Norsk Hydro
Edited by : AL CIRCLE
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Norsk Hydro's (NHY.OL: Quote) chief financial officer said on Tuesday that financing deals were helping to drive aluminium prices but they still had performed poorly compared with other base metals.
"There seems to be a willingness to invest in these inventories to keep them off the market, with returns that can be locked in, therefore you have the prices that you have," Jorgen Rostrup told the CRU World Aluminium Conference in Barcelona.
"It is still a tight aluminium balance in the physical market. That is part of what sets the price, but obviously the price is also set by financial things," he added.
Metal industry sources estimate these deals have tied up a hefty 70 percent or 3.3 million tonnes of record high aluminium stocks -- 4.7 million tonnes in London Metal Exchange-registered warehouses.
"There seems to be a willingness to invest in these inventories to keep them off the market, with returns that can be locked in, therefore you have the prices that you have," Jorgen Rostrup told the CRU World Aluminium Conference in Barcelona.
"It is still a tight aluminium balance in the physical market. That is part of what sets the price, but obviously the price is also set by financial things," he added.
Metal industry sources estimate these deals have tied up a hefty 70 percent or 3.3 million tonnes of record high aluminium stocks -- 4.7 million tonnes in London Metal Exchange-registered warehouses.
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